Would you buy a house with a friend or relative to get on the property ladder?

If you dream of buying a house, you probably want to either buy it alone or with your partner. But with house prices out of reach for so many people, some are looking at another option - buying with friends or relatives.

Many consider it a more affordable way to buy a home and enjoy perks like sharing mortgage payments, splitting the cost of a deposit and getting a bigger and better property.

But while buying with friends or relatives can fast-track you onto the housing ladder, it’s not free of pitfalls.

According to a Barratt Homes survey, almost half (43%) of Brits are worried about what would happen if one person wants to sell.

Many also had other worries about this type of living arrangement, such as:

• disagreements over money - 28%
• how it would affect the relationship - 19%
• legal complications - 6%
• if each person is contributing equally - 4%

So if you’re weighing up this option, it’s important to think very carefully and make sure you both know how you’d deal with these possibilities.

What if a dispute arises?

There are countless reasons why someone might want to move out or sell their share - and they shouldn’t put your friendship or family bond in jeopardy.

So it’s worth being prepared, perhaps by drawing up a Deed of Trust or Cohabitation Agreement.

As Adrian MacDiarmid of Barratt Homes says: “These agreements are intended to provide clarity if disputes arise, if someone is unable to meet their financial commitments, or if a co-owner passes away.”

Responsibility for paying mortgage is shared

If you buy a house with a friend or family member, remember that you both share the costs and responsibilities that come with owning a property.

And the consequences of falling behind with your mortgage apply to both of you.

“If one person is unable to pay, the others may need to cover the shortfall, and disputes or missed payments may impact credit records,” said Mr MacDiarmid.

“Lenders will hold each borrower accountable for the full mortgage amount, regardless of how incomes are split or how payments are divided between borrowers each month.”

So if you default on your mortgage and it’s not strictly your fault, you could still find it harder to get other loans further down the line.