Flatmate mortgages 'will make a huge difference to first-time buyers'

Posted: 01 Apr 2010 09:54:55 GMT

The introduction of flatmate mortgages would make a huge difference to thousands of first-time buyers, it has been suggested.

Jonathan Moore, director of easyroommate.co.uk, says: "Flatmate mortgages have the potential to offer a vital lifeline for would-be homeowners looking to get on to the housing ladder. Lenders are simply not allowing first-time buyers to borrow what they need to buy a home."

However, he states that taking into account a potential rental income that a spare room in a property could generate could make a "significant difference" as to how much a first-time buyer is permitted to borrow.

According to the site, a spare room could generate an additional £365 for a would-be homeowner each month, equating to £4,392 a year.

A recent study by the National Housing Federation revealed that four out of ten young adults are putting off starting a family until they can afford to get onto the property ladder.

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