Buying together on the increase - but breaking up is hard to do says Scottish Widows Bank

56% of graduates surveyed who graduated in the last 10 years are not homeowners

72% of graduate first time buyers have bought with a partner, family member or friend (this compares with 69% last year); Over two-thirds (69%) of those with a joint mortgage would be unable to buy the other person(s) out; Graduates currently have an average debt of £10,586 (excluding mortgage debt).

New figures from the fourth annual Scottish Widows Bank Graduate First Time Buyer Survey have revealed an apparent rise in the number of graduates who are clubbing together in order to buy their first property.

Only 44% of those surveyed who have graduated in the last ten years are currently on the property ladder and of these nearly three quarters (72%) have pooled their resources with a partner, family member or a friend in order to get their foot on the property ladder - up from 69% last year.

More worryingly however, over two-thirds (69%) of all those who have a joint mortgage would be unable to raise the money to buy the other person out should the living arrangement turn sour.Perhaps it is not surprising that joint mortgages are becoming more popular when you consider that 70% of the graduates surveyed who currently don't own a home cite unaffordable house prices as the biggest barrier preventing them from buying.

Debt is also an issue, with the average graduate surveyed with debts in the red to the tune of £10,586 (excluding mortgage debt).Amanda Docherty, communications manager for Scottish Widows Bank, comments: "These findings tell us that first time buyers are increasingly pooling their resources in order to get on to the property ladder.

In principle, with a widening gap between earnings and house prices, it is a good idea, as it can help overcome some affordability issues.

Two salaries stretch further than one."However, this is not an arrangement that people should rush into.

Nobody wants to end up in a situation where they find it extremely difficult to share a home with someone they no longer get on with but can't afford to do anything about it.

With no exit route in place, graduates need to be fully aware of the size of the commitment involved in buying with someone else."The figures also show that of all graduates surveyed with a mortgage more females opt for a joint mortgage arrangement than their male counterparts.

A massive 77% of females who graduated in the last ten years have bought with someone else compared to 65% of males.

Female graduates surveyed would also find it more difficult to buy out the other party as over three quarters (76%) would be unable to raise the funds needed, compared with 59% of male graduates.

Amanda Docherty continues: "These figures are perhaps unsurprising when you consider that women continue to earn less than men.

Our survey revealed that only 34% of the female graduates surveyed earn upwards of £25,000 compared with 49% of the male respondents."In conclusion, Amanda Docherty says: "Although buying together isn't a new trend in itself, it appears that buying together out of wedlock or civil partnership is more popular now as is buying with friends and family.

However, buying together isn't the only option available to graduates.

The Government's shared ownership schemes are designed to tackle issues of affordability and lenders like ourselves also offer a range of solutions, such as guarantor facilities which require parents to cover only a portion of the loan.

I would urge graduates to take the time to consider all the options that are available in the marketplace and choose the one that is right for their circumstances."EndsNotes to editors Research conducted online by YouGov Plc between 19th - 21st June 2007 with 2523 graduates who have graduated in the last 10 years.

Results are un-weighted.

YouGov is a member of the British Polling Council.Research conducted online by YouGov Plc between 6th - 7th September 2006 with 1989 graduates who had graduated in the last 10 years.

Results are un-weighted.

YouGov is a member of the British polling council.

Scottish Widows has a range of mortgage products specifically designed to cater for graduates and first time buyers:102% Graduate Mortgage with or without guarantor option;110% Professional Mortgage;102% Key Worker Mortgage.

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