The good news is that falling house prices have made it possible for many people who never dreamed of owning their own home to think seriously about the option. Unfortunately, the bad news is more stringent lending policies have made it more difficult to obtain a secured loan or mortgage.
There is one possible solution to the dilemma: obtain a joint ownership mortgage with someone you know and trust.
In the United Kingdom, it is possible to structure a property deed to show up to four individuals as co-owners. From a practical point of view, that means you could in theory combine your resources with three other friends and purchase a home. With each of you having an interest in the home, making the monthly mortgage payment will be easier, even if one of you goes through temporary unemployment or some similar mishap.
There is also the advantage of splitting expenses on utilities, the cost of general upkeep, and even on making needed repairs to the home. Once the property is paid in full, there is always the option of each co-owner selling his or her share to any of the remaining owners, which means each of you have the opportunity to realise something from the investment even if you choose to not remain in the arrangement long term.
Keep in mind that many lenders will only consider the income of the top two earners in the group of prospective owners. Maximise your chances for acceptance by putting your best foot forward, both in terms of income and general credit worthiness.
