The Government have suggested to the mortgage lending industry that special rates should apply to those first time buyers who club together to purchase a home. "Mates Rates" is an interesting sound bite. Many people are already joint owners subject to conventional rates of interest and most of them will tell you that having initially scraped together a deposit and found a lender prepared to provide an acceptable mortgage offer the real test is "staying mates" throughout the ownership of the property. For any number over two and whether exclusively male, female or a mix (including siblings) co-ownership brings with it a vast array of serious issues such as non-owning occupiers as boyfriends or girlfriends, unemployment of one party, going abroad or to another region to work or more simply deciding when the joint purpose ends and there is a need to sell.

Buy-out options or agreements to cover costs when one party is no longer in occupation but remains a joint owner provide stability and helps prevent losses.

Taking advice early can save your relationship with your mates as well as money.

If you require any further advice or assistance please contact Albert Barrett or a member of the Property team at Wortley Byers on 01277 268313 or abarrett@wortleybyers.co.uk.

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