Entering into a joint mortgage with a stranger 'extremely risky'

News Category: Industry News

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Buying a property with someone you don't know is a venture that is more trouble than it's worth.

That is according to independent financial advisor Bestinvest, which has warned that entering into a joint mortgage with a stranger can lead to all kinds of complications, both personal and financial.

There is "always the possibility" that one of the property's co-owners will become unable to keep up with the mortgage repayments, or that they will fall out with each other.

Peter O'Donovan, mortgage manager at Bestinvest, noted that despite having a good credit history, an investor may not be a great person to do business with.

"If you don't know the person you are buying with you could find yourself in all sorts of problems," he said.

"If you buy a house with someone and you don't know their credit record, that's even worse because you are jointly and solely liable for that mortgage. If the other person stops paying you have to continue".

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