Then there were four - or not

HSBC, one of a few lenders prepared to offer mortgages to four people on one property, has reported a 50% boom in group mortgages.

The bank said that its research showed up to three quarters of first-time buyers would consider purchasing a property with friends.

Barry Blackshaw, the senior manager of lending markets at HSBC, said: "We are addressing customer need. First-time buyers are increasingly unable to meet traditional lending criteria as a result of house-price growth."

"As prices are unlikely to fall any time soon, we are expecting this trend to continue."

Concerns

Industry experts are increasingly concerned about shared mortgages, as clubbing together could create problems in time.

Sue Anderson, of the CML, said, " Borrowers need to be careful. This kind of offer can create unstable households, which could ultimately be bad news for the owners and for the property market."

Richard Donnell at Hometrack said, "Shared equity, shared ownership are all viable opportunities, but there is nothing wrong with renting - it gives you flexibility, it's cheaper than buying and you can save up money."

Although group mortgages are rising as a proportion of total lending in the UK, they still account for a relatively small percentage. Between 2000 and 2005, the number of mortgages lent to groups of three or more borrowers more than doubled, from 0.3% to 0.7%, according the CML.

Other lenders, including Abbey, HBOS and Britannia Building Society, allow up to four friends, the legal limit for the number of joint owners allowed on one property, to buy together.