View more on these topics warns of pitfalls of ‘mates mortgages’ is urging consumers to check their credit histories and those of their co-buyers before entering into a so-called ‘mates mortgage’ deal.

According to the British Bankers’ Association and the Building Societies Association, around 60 banks and building societies are now prepared to lend to up to four applicants for a single property.

As a result of rising house prices, more first-time buyers are looking to team up with friends to purchase their first property.

But advises that buyers need to be confident that all parties have clean credit records.

Richard Brown, chief executive of, says: “Unpolished credit records could see potential buyers fall at the first hurdle and all concerned could find they are tarred with the same adverse credit footprint brush.

“It’s crucial for all applicants to get their credit reports checked before proceeding.

“Any bad credit history on the part of one person will be instantly recorded against all parties to the mortgage as they become linked by association. This could make it hard or even impossible to secure credit in the future.”

Brown also warns on the need to identify a lender best suited to requirements.

He says: “Some lenders, for example, will only take the two highest incomes into account whereas others may take up to four incomes or just look at the overall affordability of the group as a whole.”

“Lenders that will take all four incomes into account include Britannia, HSBC and Skipton, but it may be worth speaking to a mortgage adviser who can do the shopping around for you and negotiate with the lenders on your behalf.”

Brown also warns that it could also be problematic if the mortgage goes into arrears as a result of one party failing to meet their monthly share as all will have their credit files marked as a result.


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Swaps continued to surge last week. All the swap rates I record are now above 6%. Although they fell back slightly on Tuesday, they still finished significantly higher. It will be interesting to see if they fall a bit following the most recent base rate announcement. One-year swaps are factoring in three more base rate rises, which I think is unlikely.


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