New mortgage helps young professionals step onto the ladder

Britannia Building Society and graduate network are clubbing together to help city dwelling first-timers share mortgage costs.

09:29 26 July 2004

Britannia Building Society and graduate network are clubbing together to help city dwelling first-timers share mortgage costs.

The new scheme enables twenty-somethings, unable to go it alone, to join forces and share the mortgage on a property.

'Share to Buy', allows up to four young professionals to purchase a property together at a multiple of three times each of their salaries.

For example, four young professionals, each on salaries of 24,000 p.a., could afford a property worth up to 320,000. Given a ten per cent deposit between them, this would currently give each individual monthly repayments of 435.72 per month, on their 72,000 share of the mortgage.

The managing director of Britannia, Tim Franklin, comments: "With many graduates and young professionals having built up sizeable debts as students, we are seeing a real influx of twenty-somethings to the big cities, drawn by the prospect of a sizeable salary."

However, as many are "struggling to purchase a home at big city prices", and with "many young people feeling that rent to a landlord is money down the drain", Mr Franklin added that, "it is becoming more acceptable for friends to club together in order to purchase a property."

With the average London property costing 251,368 an individual would need to earn a salary of 68,228 - twice as much as the average salary in London of just 33,118.

As a result, Londoners are relocating further away from friends and are commuting longer distances.

The managing director of graduate network, Stephen Dwelley, added: "Overall, we aim to offer an acceptable way in which young professionals can get a stake in the property market at an earlier age than is currently possible."

Britannia also provides free comprehensive legal arrangements as part of the whole package.