Glossary > The Letter J
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The Letter J
Saber Finance know the finance world is full of terms, phrases, buzz
words and jargon.
On this page we explain,
Joint Application >
Joint Tenants
Joint Application
A joint application is a finance request via an application form by two or more people. Sometimes a joint application is called a dual application, by applying jointly the amount that could be borrowed should increase because both applicants income is then taken in to consideration. On a joint application both parties credit score is taken into consideration so there is a real chance that rates could be higher if one side has a problem rating.
Mortgage Joint Applications
Joint applications with mortgages is covered by the income multiples rule. The income multiple rule is not set in stone and there can be occasions when more will be lent and this is subject to the individual lender of the finance applied for.
The income multiple rule may be useful as a guide to how much could be borrowed but it tells people little about how much they can actually afford to repay. The reason is because mortgage rates are the key factor in determining the affordability of property, the lower the interest rate the less a given mortgage is going to cost but if interest rates rise the actual cost each month will also rise meaning larger repayments. So if applying jointly will enable you to get that larger mortgage it does not have to mean you could afford to.
Credit Card Joint Applications
When jointly applying for consumer credit, such as credit cards you will both be liable for the full amount owed so you would have to settle any disputes between yourselves. Also any non payments will also effect both parties credit ratings and could lead to problems gaining any further credit.
Loan Joint Applications
With jointly applying for loans the amount that may be loaned could increase but once again both will be liable for the full amount and disputes must not be allowed to affect the repayments. Credit scores of both parties will be taken into consideration by the lenders before the finance is granted and both parties credit records would be adversely effected by any defaults and non payments.
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Joint Tenants
Joint tenants is the owning of some land or a property by two or more people. Each person has rights in the whole of the property and is entitled to a share of any money raised from selling it. A point about a joint tenancy is, if one of the joint tenants dies ownership of the property automatically passes to the survivors.
If you are in any doubt about any financial product or term we recommend that you seek advice from a financial advisor.
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