17 Oct

Buyers choosing risky joint mortgages

Buyers choosing risky joint mortgages

Desperation to get on the property ladder is prompting more and more first-time buyers to opt for joint mortgages with people they hardly know.

According to figures to Skipton Building Society, one in five first time buyers who have taken out a mortgage with someone other than their husband or wife have done so with people they have known for less than a year.

The chief reason cited by those doing so (56 per cent of respondents) is because a joint deal made good financial sense at the time.

However, the perils of hastily embarked-on joint deals were underlined by the survey's findings that one in ten of people whose joint mortgages came to an end were left with nothing from the sale.

Skipton spokeswoman Jennifer Holloway said: "We can all understand the panic that potential homebuyers must feel at the news that house prices are still rising – to them, the dream of affording their own home has turned into a nightmare.

"But desperation shouldn’t mean that caution is entirely thrown to the wind; at Skipton, we’ve seen first hand what can happen when people, particularly relative strangers, have bought in haste only to repent at leisure - usually with emptier pockets."
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