The Glossary
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The
Letter J
This
section provides information on terms and phrases beginning with
the letter J
At the grabber we know finance is full of
confusing terms and phrases, and so on this page we explain:
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.
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.
When jointly applying for consumer credit you will both be
liable for the full amount owed so you would have to settle any
disputes between yourselves. Also any non payment will also
effect both parties credit histories and could lead to problems
gaining further credit.
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 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.
Got a piece of jargon you want explaining, it's time to let The Grabber loose.
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