Shapps said: “If there are mates who are perfectly capable of paying monthly mortgage payments but are struggling to fund a deposit of their own, there should be straightforward options to unite with their friends and take the first step on to the housing ladder together.”
Britannia is one of a small number of lenders that allows up to four friends to buy together through its Share to Buy scheme. However, just 1,300 borrowers have taken out such a loan making the appetite for a “mates mortgages” plan questionable.
David Hollingworth, head of communications at London & County, said: “The proposal is absolutely full of risks. People get into enough strife when they rent a flat together over basic things like “who finished off the milk?” and “who is going to do the washing up?” It will be even worse if they have a mortgage to fight over.”
Melanie Bien, director of communications at Private Finance, added: “It is one thing to rent with friends, which is traumatic enough, let alone to get a mortgage with them.”
