Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / Joint mortgages with strangers are ‘risky’

Joint mortgages with strangers are ‘risky’

December 21, 2007 by admin  
Filed under News, News-Mortgages

Leave a Comment

Entering into a joint mortgage with someone you do not know is “extremely risky,” say mortgage experts.

Bestinvest has said home buyers could also find themselves “in all sorts of problems” if they enter into a mortgage with a friend who they fall out with.

Peter O’Donovan, mortgage manager at Bestinvest, said: “If you buy a house with someone and you don’t know their credit record, that’s even worse because you are jointly and solely liable for that mortgage. If the other person stops paying you have to continue.”

He added that there is no protection that people entering joint mortgages can take out to protect themselves against defaulting if the arrangement does not work.

According to research conducted by Scottish Widows in July 2007, joint mortgages are becoming popular among graduates who find that they offer the only way onto the .

Of those graduates surveyed 63 per cent purchased property with a partner.

Tags: manager at Bestinvest, partner, record, Joint, way, property ladder, friend, loan

Tags:

Related Entries

  • Joint accounts driving wedge between couples
    • Almost a quarter of people who share a joint bank account with their partner suspect that their other half is using it to make selfish purchases.Research by Abbey shows that 24 per cent of joint
  • Opening joint account requires ‘utmost trust’
    • Couples considering opening a joint bank account must be sure to have the "utmost trust" in one another, according to the British Bankers' Association (BBA).Brian Capon, head of media relations at the association, explained that,
  • Lloyds cracks down on interest only mortgages
    • Over the years interest only mortgages have become popular amongst certain property purchasers, such as first time buyers that want to keep repayments down and those on lower incomes. With interest only mortgages the borrower
  • Separation must be financial too
    • January is the peak month for couples splitting up and those who find themselves in this situation are being warned to remember that financial ties remain long after the love has gone.Research shows that couples
  • It’s ‘risky’ not to take out life insurance with your mortgage, says expert
    • Although people are trying to save money as they find their finances increasingly squeezed by the credit crunch, neglecting to take out life insurance along with a mortgage can be "risky" an expert has advised.
  • House accessibility plunges
    • The chance of first time home buyers being able to afford a house has plummeted in the last ten years.Since 1996, accessibility has dropped by an astonishing 230 per cent, matching the low levels seen
  • Whistleblower slates FSA over building societies
    • A whistleblower who has chosen to remain anonymous due to fears over legal action has slated the UK's financial regulator, the Financial Service Authority, over its lack of action with regards to building societies venturing
  • Mortgage lenders ‘targeting better qualified people’
    • The mortgage crunch has prompted mortgage lenders to target "better qualified people and lower risk people", according to industry experts. FirstRungNow.com said that products such as guarantor, professional, joint and graduate mortgages are now "coming

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!