Consumers are more likely to have a joint mortgage with a partner or spouse than have a mortgage on their own, Equifax research has revealed.
61% of respondents are already in a joint mortgage and 56% who do not currently have a mortgage, are planning to buy with a partner or spouse.
Neil Munroe, external affairs director at Equifax, said the prevalence of joint purchasers highlights the importance of home buyers being fully aware of their partner’s financial situation before entering a joint agreement.
“It is vital that anyone planning to apply for a mortgage with a partner, has discussed their financial status before entering this agreement. If you have a joint financial agreement with a partner, then their credit information will be linked to yours for as long as that agreement exists.
“Although it is positive that over half of people who do not have a mortgage (54%) say they know their partner has a good credit rating, it is crucial that this is confirmed by each partner checking their credit report – and perhaps even sharing it with each other. Lenders look at all the financial commitments someone has when new credit is applied for – and if there are joint financial agreements they are more than likely to look at the credit history of the partner too.”
The Equifax research revealed a high level of awareness amongst home buyers of the importance of their credit information, with 71% of those who had applied for a mortgage in the last year saying they obtained a copy of their credit report before shopping around for a good deal. Equifax said this appeared to help in their applications with the same percentage saying they only made one application to secure the funding.
The research also provides an insight into current consumer mortgage spending habits. 55% of those who responded to the survey said that they are not currently planning to over-pay on their agreement even though interest rates are low. The main reason that individuals currently do not have a mortgage was that they cannot afford the deposit.
“Our research has given a big insight into individuals’ attitudes towards mortgages and spending,” said Munroe.
“In particular, it was interesting to see that three quarters of respondents (75%) are not getting financial help from their parents or family members towards their property purchase. With no one else to rely on for their funding it is therefore even more crucial that individuals check their own credit report before embarking on the application process. And if they are taking out a joint agreement, it’s worth talking to their partner about their financial status, so that they can understand exactly how a lender will view their combined application.”
