Warning over joint mortgages

People considering taking out a joint mortgage are being urged to ensure that they know the people they are choosing the product with.

Neil Johnson, PR policy manager at the Building Societies Association, said that there are a number of factors people should consider before taking out such a mortgage.

Although lenders tend to have different terms, providers usually stipulate that all parties are liable if the loan goes unpaid, Mr Johnson suggested.

"Hopefully people have a plan for what they would do should somebody decide to move, because the implications if you don't have that agreement in place can be quite severe for the people concerned," he remarked.

The Council of Mortgage Lenders recently reported that gross mortgage lending reached a new record of £34.2 billion last month, compared with £31.4 billion in May.

However, the organisation's director general Michael Coogan said that borrowers should be "thinking seriously" about the possibility of higher mortgage payments if interest rates rise again.

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