Joint mortgages ‘useful for first-time buyers’
People struggling to get on to the property ladder have been advised to consider taking out a joint mortgage.
The recommendation was made by a spokeswoman for Nationwide, who explained that buying a house with a friend or relative is one of a number of options open to people faced with affordability problems.
A lot of young adults are familiar with sharing a home with friends after spending several years in student digs and mortgage providers are now also willing to consider the idea, she continued.
"Many lenders offer mortgages for friends who want to buy together, which can be a cheaper and less stressful way of getting started," the spokeswoman said.
She added that people entering into a joint mortgage need to be aware that they are all responsible for making the repayments, regardless of how they split the loan.
This responsibility recently prompted Peter O'Donovan of independent financial adviser Bestinvest to warn that entering into a joint mortgage with a stranger is "extremely risky".
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