Warning issued over joint mortgages
Wed 19 Dec 2007 4pm
A
mortgage adviser has warned prospective homeowners that entering into a co-buying scheme to get on to the property ladder is "extremely risky".
Peter O'Donovan,
mortgage manager at independent financial advice firm Bestinvest, said that buyers should think carefully before proceeding with a joint
mortgage, as personal circumstances and relationships can easily change.
He advised people to be sure of the other person's
credit record before taking out a joint
mortgage, but maintained that such an arrangement always contains an element of risk, even between good friends.
"There is always a possibility that people will fall out, or that someone's circumstances change before the other," Mr O'Donovan explained.
He also advised those considering a joint property purchase to "be totally clear as to the obligation you have entered in to".
According to a recent survey from Scottish Widows, 63 per cent of house purchases made by graduates involve some kind of joint buying arrangement with a partner.
