Glossary - Letter J

money selecta knows the finance world is full of terms, phrases, buzz words and jargon. The below terms will help you with terms beginning with the Letter J

On this page we explain,
Joint Application

Joint Application

A joint application when it comes to finance is a request for finance made by two or more people and is otherwise known as a dual application.The fact that when it comes to joint applications the income of both parties will be taken into account, means that the amount you are able to borrow should consequently increase. However you should also be aware that both parties credit score will be examined, so if one party has a really bad credit history it could adversely affect the joint finance application ie; interest rates will be greater.

Mortgage Joint Applications
Joint mortgage applications can result in more money being granted for a mortgage. the multiple income rule will vary from lender to lender, some lenders will be willing to lend a larger amount than others and this often depends on how the lender calculates income with relation to borrowing. The income multiple rule is not set in stone.
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. Should interest rates rise then the borrower may find that they can no longer afford the monthly repayments on their mortgage, this can lead you into great debt problems. When applying jointly for a mortgage you should consider whether you will be able to make repayments comfortably.

Credit Card Joint Applications
When jointly applying for consumer credit, such as credit cards you will both be liable for the full amount owed, this means that should one person not be able to afford the repayments then the other one will have to make sure the debt is paid, otherwise the debt could spiral out of all proportion. You should be aware of the pressure of entering into finance jointly, non payments will affect both parties and future finance will be reliant on the successful payment of the current joint debt.

Loan Joint Applications
Joint loan applications will usually increase the amount you can borrow. However if one of the joint applicants has a bad credit history this will adversely affect the amount borrowed jointly. Both applicants will be held responsible for the full amount of borrowed funds and both will be held responsible should repayments not be made.