Joint mortgages – ensure all aspects covered

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by Kay Murchie

More and more people are clubbing together to buy their own home. A joint mortgage enables them to get out of the rental trap and invest in their future. In many cases, sharing costs through joint ownership can sometimes work out cheaper than renting.

The Building Societies Association (BSA) has advised that potential homeowners looking at signing up for a joint mortgage should ensure that all aspects are covered before proceeding with such schemes. Joint mortgages can vary from lender to lender and it is important to have agreements in place with other householders.

BSA has remarked that all parties are liable even if one part of the mortgage is not paid. Potential owners should make contingency plans in case one member moves out because if an agreement is not in place, the consequences can be quite severe.

BSA added that all issues should be looked at and checked and ensure that all areas are covered so that it will work from a financial point of view and for peace of mind so they can live amicably with the people they intend to share with.