Joint credit card impat on mortgage application - Help

Mkla9

Hi

I have a joint credit card with my sister which I have found out she has £9000 on the limit is £11,000. She has never missed a payment paying and I have a good credit rating and so does my partner. Her credit rating isnt great and therefore cannot get a loan herself to take the debt on. I currently have a mortgage but i am looking to move in the near future, do you think this will impact greatly on my chances of getting a new mortgage?

many thanks

Senior_Paper_Monitor

There are no 'joint credit cards' to the best of my knowledge - the liability is one persons, but that person can add a user.


I assume you mean that you have a credit card on which you have provided a second card for your sister's (considerable) use ?


I assume you receive the statements ?


If this is as I have guessed this will remove c £3,250 and c £5,400 from the salary that will be used for calculating affordability (i.e reducing what you can borrow by between c £13,000 and c £25,000 depending on the lender)

Mkla9

Senior_Paper_Monitor wrote: »

There are no 'joint credit cards' to the best of my knowledge - the liability is one persons, but that person can add a user.


I assume you mean that you have a credit card on which you have provided a second card for your sister's (considerable) use ?


I assume you receive the statements ?


If this is as I have guessed this will remove c £3,250 and c £5,400 from the salary that will be used for calculating affordability (i.e reducing what you can borrow by between c £13,000 and c £25,000 depending on the lender)

No I don't it was managed online by her.

Sorry if sound stupid can you explain what the 'c' means before the figures you have put? and why it decreases it by that much? Many thanks

Senior_Paper_Monitor

c = circa (i.e approximately)


The lenders look at the total and assume a cost of between 3 and 5 % per month x 12, which is then deducted from your allowable income on which they will lend something between 4 and 4.7 times (general guide) that in come level.

Yorkie1

Senior_Paper_Monitor wrote: »

There are no 'joint credit cards' to the best of my knowledge - the liability is one persons, but that person can add a user.


I assume you mean that you have a credit card on which you have provided a second card for your sister's (considerable) use ?


I assume you receive the statements ?

Mkla9 wrote: »

No I don't it was managed online by her.

OP, just to clarify in case it makes a difference to the others' answers:

Did you take out the credit card and add her as a second user, or was it the other way round?

(I'm wondering whether it's a commitment she has to declare when applying for a new mortgage, if she's a second user on someone else's account?).

Mkla9

No I added her. Thank you

Thrugelmir

Mkla9 wrote: »

No I added her. Thank you

Then it's your liability from the mortgage lenders perspective.

Her credit rating isnt great and therefore cannot get a loan herself to take the debt on.

And you've allowed to borrow another £9k in your name.

Personally I would have serious concerns.