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Warning over joint mortgages

Property buyers have been warned over the potential pitfalls that exist when considering entering into a joint mortgage with a stranger.Peter O'Donovan, mortgage manager at IFA organisation, Bestinvest, warned that homeowners could find themselves in "all sorts of problems" if they decide to enter into a joint mortgage with someone that they barely know."Even if someone has a good credit record and seems on the outset fine, once you get in the house, they could be different," he warned.Furthermore, Mr O'Donovan added that there is always an element of risk when buying a property via a joint mortgage, explaining: "There is always a possibility that people will fall out, or that someone's circumstances change before the other."He also pointed out that there is "no protection at all" for people who enter into a joint mortgage and are stung by the other person defaulting.However, he did admit that the potential of joint mortgages to provide people with "bigger borrowing power" makes joint mortgages attractive at a time when property prices remain high.

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