Mortgage News

Joint mortgage 'barely affected by credit crunch' - 20/12/2007

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Joint mortgages have not been affected by the recent credit crunch, according to one expert.

Peter O'Donovan, mortgage manager at Bestinvest, said the joint mortgage "market has hasn't changed much at all".

He did acknowledge that lenders have "tightened up their lending policy", but added that potential housebuyers who have "reasonable deposits" and are looking to borrow money together have not been unduly affected.

Commenting on the joint mortgage product more generally, Mr O'Donovan said the product offers buyers the chance to generate "bigger borrowing power".

However, he did state there are some potential drawbacks.

[Joint mortgages] are "risky when you have two friends buying a house for the sake of getting a house rather than renting. There is always a possibility that people will fall out, or that someone's circumstances change before the other," he claimed.

Research carried out by Scottish Widows this summer shows that joint mortgages are becoming increasingly popular among graduates.

The figures showed that 63 per cent of graduates purchase a home with a partner, and from this number 69 per cent would be unable to buy the other borrower out if they needed to.

Bestinvest is an independent financial advisor that has investment assets worth in excess of £3.5 billion. It was originally founded in 1986.

© Adfero

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