Groups of friends who are looking at taking out their first mortgage together have been reminded of the implications of such a move.
According to Sue Anderson, an official at the Council of Mortgage Lenders (CML), each individual is responsible for ensuring mortgage repayments are delivered on time, the Daily Mail reports.
Therefore, every person who has taken out one of these mortgages for first-time buyers must fulfil their personal responsibilities.
“If one stops paying, the others have to cover the difference or face losing their home,” she commented.
Ms Anderson added that relatively few first-time buyers mortgages are taken out by groups of friends, which usually means three or more people.
Indeed, she said this type of buyer has never accounted for more than one per cent of the mortgage market.
This comes after Grant Shapps, the housing minister, highlighted this option as one he would “like to see explored”, as products for friends who are “perfectly capable” of meeting monthly mortgage payments but are “struggling” to pay for a deposit without help should be easier to access.
First time buyers have a lot to research, not least, the best deals amongst mortgages for first time buyers.
Source: First Rung Now