Mortgage 'mates' at extra risk

The relentless rise of house prices has cause a surge in demand from first time buyers who are teaming up with friends to take their first step on the property ladder. Around 60 banks and building societies are now prepared to lend to as many as four applicants for a single property, but this has prompted fears that many young people could be impairing their credit ratings. When applying for a mates’ mortgage, each party’s credit record becomes linked, if one applicant has a poor credit rating then all other parties risk being adversely affected by association. Richard Brown, chief exe...