First-time buyer news: First-time buyers boosted by joint purchases

26-Apr-2006

More and more parents are buying homes together with their first-time buyer children to help them get a foot on the property ladder.

Increasing numbers of parents are taking this option either as an investment or a gift, according to research by Linden Homes.

"Buying jointly with parents is becoming increasingly popular as children struggle more and more to fund their own first home purchases," said Philip Davies, chief executive of Linden Homes.

Find out more about the housebuying process in the FirstRungNow Home Buyer's Guide

When parents choose to do this, the parents and their child are both names on the mortgage deeds, with the lender deciding on the final amount to offer based on the combined income of the applicants.

Aspiring first time buyers considering affordable housing options should work with a good mortgage broker

In the majority of cases the available mortgage is calculated by subtracting the parents' own mortgage payments from their monthly income and multiplying by four and then adding the child's salary.

However, Mr Davies goes on to warn that joint purchases entail a higher level of commitment from parents and means that they are more likely to be involved in the property choice.

Click here to see what properties are on the market in your area – whether you buy alone or with others

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