Last year, Gemma and Jack’s landlord once again hiked the price of their two-bedroom flat in East London by 30% to £2,500 a month and this was when they decided enough was enough
Two friends who decided to get a mortgage together are now saving £300 a month compared to what they used to spend renting.
Jack and Gemma were stuck in the renting bubble, just like millions of other young people in the UK. The friends – who met through work and have lived together for five years – were living and working in London but faced extortionate rents and were not able to put away much money each month.
Last year, their landlord once again hiked the price of their two-bedroom flat in East London by 30% to £2,500 a month and this was when they decided enough was enough. The pair put their cash together and purchased a flat together as friends. Jack told The Mirror: “It got to a point where it just ridiculous, and I think it was Gemma that put the idea on the table. She’s the one who thinks ahead but I think I pushed us and said right, we’re doing it now.”
Gemma said the duo knew the set-up was not going to be a “forever arrangement” but it made sense for them as they wanted to remain in the capital for the coming few years. Before going ahead with the plan, the friends noted that they had a very “long and detailed” discussion on how the set up was going to work before they decided to go for it.
Gemma said: “It had to be right for the both of us and we had all these discussions up front. So with partners, we talked about the idea of them moving in and what we could potentially be happy with, so everything was clear before we put down any money.”
Alongside this, Jack said the process of buying a house meant you needed to be “completely transparent” when it comes to finances. He added: “We are very close, but the whole process was another level like we are showing each other bank statements and savings, all your dirty laundry really. But if you’re not comfortable sharing this information then you shouldn’t do it.”
Gemma and Jack then began their search for their new home and came across the property developer Fairview’s “Buddy Up” scheme. The scheme, first introduced last year, offers help to people buying a Fairview property with friends and provides them with legal advice and guides.
Overall the pair saw five flats around East London before finding the one they were going to buy. Gemma added: “It moved very quickly once we found it, because we did a lot of research on what we could afford, the type of place we wanted, the area, how much we could afford and how far we could go.”
Gemma and Jack both had managed to put away £20,000 which gave them a budget of around £400,000 for their home. Jack said: “We were completely upfront about our situation to the lenders and our mortgage broker was really great, and they helped us find the balance of what we could spend and what we wanted to be paying.”
Jack and Gemma were able to borrow more, however opted for a lower amount as they wanted to keep their monthly repayments as low as they could Gemma added: “We always wanted to be paying less more the mortgage than we were in rent, that was the main thing and we’ve done it, so our monthly mortgage payments are hundreds of pounds less then what we were paying for rent in our last place.”
The friends have now settled into their home after picking up the keys for the first time in May. Going forward, Jack and Gemma say they do have options for the future and would either sell the place together or rent it out to others. Gemma said: “For now we are settled and we feel so much better than we did before. So yeah things will change in the future, but for now, it’s good.”
The pair say they would “definitely” recommend buying with a friend to anyone who is frustrated with renting, Gemma added: “If you are sick of renting, honestly do it. If you want to do it, make sure you’ve lived with your friend before, and be completely honest and open about everything. Talk and discuss everything, that would be our main piece of advice.”
