Joint Loan Application Tips

by Peter Kenny

If you are living with a partner or family member and you need some money but don’t have the means, then you should think about applying for a joint loan. Joint loans can help you and a partner or family member both get their hands on more money than you could individually, whilst sharing the burden of repayment. If you want to know more about joint loans and how to apply for them, then here is some useful information that might help.

Who can I get a joint loan with?

Joint loans are not available for all types of relationship, but are in fact limited to certain partnerships. Married couples are the most common joint loan applicants, although unmarried couples are not eligible. Some companies will allow applications during engagement, but the loan will not be given until after marriage. Also accepted are applications from a parent and child. Although some loan companies also consider two brothers, all other sibling and family relations are generally not accepted.

Getting more money

The main reason to jointly apply for a loan is to get a larger amount of cash than you might be able to if you were applying on your own. Married couples or parents and children can include both of their incomes to allow for a larger loan to be taken out. If you have a similar salary, then you can usually double the amount that you can borrow.

Unequal earnings

Applying for a joint loan doesn’t mean you both have to have excellent salaries. Even if one of you doesn’t have a salary, but money earnt from a part-time job or other work, this can help you both to get more money. As long as you are both earning and can make a contribution to the repayment it will be in your interests to apply jointly.

Both responsible

Although both of you will get benefits from the loan, it is important to remember that you are also both responsible for the repayment of the loan. Even if you are married and split up, the amount still owed on the loan will need to be paid back by both of you. Of course there is more risk of default than a normal loan, because should one of you stop payments then the other may not be able to keep up and so you will both end up in default. This means you risk having your credit history damaged even if you were not responsible for the debt problem. Make sure that you can definitely afford to pay the loan back, even if you are no longer living with the other applicant.

Who should get joint loans?

Although most married couples are eligible to apply for a joint loan, they are not right for everyone. If one of you has a poor credit history or earns significantly less than the other, a joint loan may not be the right choice for you. Also, try and make sure that any joint loan you take out will benefit both of you. Just because you can get more money does not mean that money will benefit you both. Always use joint loans to fund something that will help you both, so that you can get the most out of your loan.

Peter Kenny is a writer for The Thrifty Scot, please visit us at Poor Credit Loans and Compare Secured Loans
Visit www.thriftyscot.co.uk/

For more News, Articles, Guides, Tips, Tricks and various Mortgage And Loan Products information... visit our site at http://www.mortgage-and-loan-info.com.

Secure Loan vs Remortgage

by Dimitri Konchin

In getting a new loan it is important to understand the difference between a remortgage and a secure loan. A remortgage is when you take out a new loan to replace the current loan you have on your house. A secure loan is using the equity in your house to take out a loan. Example, if you have a house with property value of 180,000 and you have 70,000 left on your mortgage. You need to raise 40,000 through a secure loan or a remortgage. In a remortgage you would take out a loan of 110,000 and pay down the 70,000 you have left on your mortgage. This will leave you with the 40,000 you require. In a secure loan you can just borrow the 40,000 and use your house as collateral.

What is the difference between the two you may ask? First the interest rate you are going to pay on you loan will be different. You will receive a lower rate with a remortgage then you will with a secure loan. This is because the lending company is making profits on the whole 110,000 and not just the 40,000. Which means the lender can give you a lower rate loan, while maintaining higher a profit margin.

The downside to this particular aspect is that your original lender can have a penalty if you pay of your loan right away. So if there is a 10% charge on paying off your original mortgage early, it may be in your best interest to get a secure loan instead of a remortgage.

If your credit has been dramatically affected, it will also make it expensive to remortgage your house because your new loan might have a much higher rate then your original mortgage. An important reason for a person to go get a remortgage is if they are unsatisfied with their current lenders business ethics.

If you don’t agree with the customer service that is provided by your lender, you can find a more customer friendly loan provider if you remortgage your house. Whether you get a remortgage or a secure loan, you have to make sure you understand the benefits and the downsides of both methods. Do analyses, see which one you believe is better before you go and get the loan.

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