Barclays Woolwich Mortgage: Property Ladder

Are you finding it hard to get a foothold on the property ladder?

Buying a first home is never easy - getting that first mortgage can be tricky and more first-time buyers are finding that they're not earning enough to qualify for the mortgage they need.

If that sounds familiar, don't worry. You do have options.

Buying with others

One increasingly popular choice is to pool resources with one or more friends or family members to help boost your spending power.

It works like this:

lenders typically give joint applicants 2.5 times their combined income, or possibly higher if there are more than two people buying. That amount, plus the deposit you've saved, is the amount you could spend on your new house.

Before you start choosing furniture together, though, don't forget that regardless of how emotionally attached you are to the people you're buying with, buying a house together is first and foremost a business deal.

That means that all the arrangements should be formalised by a solicitor. It's the best way of ensuring that everyone understands exactly what’s expected of them.

How it works

There are two types of legal arrangement for co-owning property: joint tenancy agreements and tenancies in common.

Once you've chosen the people you want to live with, you'll need to decide which of these is most appropriate for your circumstances. This will be based on some of the following:

• What your relationship is to your fellow purchasers. • Who will own what percentage of the property. • The deposit you pay - this will be based on how much of the property you own and should be detailed in your legal documents. • How long you anticipate you will want to own the property for. • Is one party likely to want to sell the property in the near future? If so, who will have the right to buy this portion?

Link to previous articles: Checklist for Buying a Home Barclays Woolwich Mortgage FAQ Barclays Woolwich Mortgage Glossary Barclays Woolwich Mortgage Reserve Barclays Woolwich Mortgages: Buy to Let Mortgage Barclays Woolwich Mortgages: Buying your first home