The close friends used a combination of savings and help from their families to raise a £23,000 deposit on a £180,000 three-storey townhouse in Cardiff Bay.
"We couldn't afford it on our own so it made sense to buy with someone who was in a similar position," explains Charlotte, 25. "It has worked out well. Although we're easy to live with, we had agreements put down in writing."
A declaration of trust was drawn up by their solicitor uncles that covered issues such as what would happen if one of them wanted to sell and how any future profits would be split based on how much each had invested.
"Our biggest worry was that we would fall out over certain issues but that was addressed by the declaration of trust," she adds. "You need to have everything in place and agreed up-front rather than tying up loose ends as you go along."
Charlotte and Anna, 25, then took out a repayment mortgage for £157,000 over 35 years in both their names through the Principality Building Society and are paying £750 a month. They pay £500-a-month into a joint account, and from time to time they also rent out their spare room which helps cover the bills.
Their set-up is far from unique. as thousands of first-time buyers look for new ways to get on the property ladder. As well as tapping up family members and combining resources with like-minded individuals, they are also buying run-down properties at auction, striking deals with housing developers and taking advantage of shared equity schemes.
Kate Faulkner, author of property guides for Which? and managing director of designsonproperty.co.uk, has noticed a change in the approach of first-time buyers .
"They have become more resourceful. They realise they have to be quite canny about the property they buy and what they pay," she says. "The days of borrowing loads of money are over and that's no bad thing. "
This has led to all sorts of arrangements. "People are recognising they can tackle the affordability issue through buying with friends, while shared ownership can be a viable option," she adds. "I also love the fact that families are pitching in together, such as buying properties with an annexe where the parents can live."
So what are the options for first-time buyers – and how do they know what's suitable?
Getting help from your family
Anecdotal evidence from mortgage brokers suggests most first-time buyers needing help to raise a 10 per cent deposit will initially look to family members. They can also help in other ways, points out David Hollingworth of mortgage broker London & Country.
"Parents can act as guarantor so their child can get get a slightly larger mortgage," he says. "However, they have to show they can afford their child's mortgage as well as any other commitments, which can be difficult."
Some lenders will agree to lend up to 95 per cent as long as they can use some of the equity in the parents' house in the form of a charge. Others require the parent to put down 20 per cent into one of their accounts.
Buy with friends
Housing minister Grant Shapps has called on lenders to embrace the concept of so-called "mates mortgages" to help younger first-time buyers.
"If mates are capable of paying a monthly mortgage but are struggling to fund a deposit on their own, there should be straightforward options to unite and take the first step on to the housing ladder," he said.
Mr Hollingworth agrees and says most lenders will allow up to four people on an application. "The issue is how you deal with changing circumstances," he points out. "With four young people there's a good chance the situation of at least one will change so it pays to think in advance about how you would deal with that."
It's also worth bearing in mind that the more people wanting to live together, the bigger – and more expensive – the property needs to be.
Friends Rhys Cockerall, James Stratford and Rosie Campbell had each spent years renting in London before pooling their resources to buy a £397,000 property in Tulse Hill, south London. They opted for a Britannia mortgage through "Share to Buy", a web-based company that helps graduates and professionals.
"The process was very simple, much easier than our experience with other banks," explains Mr Cockerall. "The mortgage had a competitive rate and it was simple with no arrangement fees or overpayment charges."
Affordable options
HomeBuy schemes enable the purchase a percentage of a property with the plan being you eventually own it outright when you can afford it.
There are two variations – equity loans in which you receive a loan towards the purchase price that has no fees for five years, and shared ownership which enables you to buy part of your home and pay rent on the remainder.
For example, with FirstBuy the Government and house builders combine to offer first-time buyers a 20 per cent equity loan. With a five per cent deposit from the buyer, this gives them a 75 per cent mortgage. Loans will be repaid on resale of the property.
Primary school teacher Lucinda Turner took advantage of a shared ownership scheme after moving to Clapham, south London, with her partner.
They approached Notting Hill Home Ownership and bought a 35 per cent share of a two-bedroom apartment for £98,000 in The Quadrant development in Stockwell, south London. "We never thought we'd be able to afford to buy somewhere of our own but we're actually paying less each month than when we were renting," she says. "The fact that we also have the opportunity to one day own 100 per cent of the property is great."
Conclusion
It might be a struggle for first-time buyers but there are options for those willing to do their homework and see what's available. That's what Charlotte Thompson and Anna Lucas did and their decision to pool resources has worked out well.
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