Buyers warned about stranger danger
People trying to get on to the property ladder were today advised to think very carefully about the possible repercussions of entering into a joint mortgage with someone they do not know.
The rising property prices and interest rate increases of the past 18 months have made it more difficult than ever for a single person to afford to buy a home.
As a result joint mortgages have grown in popularity and a recent survey by Scottish Widows Bank found that 72 per cent of graduate first-time buyers had used this route to purchase their home.
Most had bought with their partner or with friends or relatives, but there are now several co-buying websites that introduce people solely for the purpose of sharing the cost of property ownership.
Peter O'Donovan of independent financial adviser Bestinvest thinks this could be a step too far and not just because the co-buyers may not get on when they begin living together.
"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," explained Mr O'Donovan.
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