Declare Joint Mortgage on Loan Application

CP1982

Hi,

I am preparing to apply for a new loan and want the best chance of being approved whilst also declaring everything I need to. Do I need to declare a joint mortgage even if the payment comes out of my partners account? The loan is not a joint loan and I am only asked to declare my own outgoings and not my partners. However this is a joint mortgage and therefore shows up on my credit file for the lender to see.

I also have a rental property that is in my name only so I will declare that mortgage. Can I then put the rent in the additional income box or is this not allowed because technically it is not guaranteed?

Thanks

[Deleted User]

Lenders will see your debts on your credit files. Don't try to hide them when you make your application.

Your rent should count as income - but check the criteria of your chosen lender first.

CP1982

Hi, thanks for that. I guess I am just a bit confused with the process. I am happy that they know about the loan as it's on my credit file plus the proposed lender is my mortgage provider anyway. It's just that if I have to fill in the expenditure section and say that the mortgage is an expense that comes out of my account then I'm worried that it will take my outgoings up to too high a level for the loan. There is nowhere on the form asking for my partners income or anywhere I can declare that even though it's jointly my debt I don't actually make the repayments.

Would a joint loan application be a better option? Both myself and my partner are good earners and have excellent credit ratings. We just have quite a bit of unsecured debt but our income covers the repayments easily. The loan is important so I want to get it right. I am worried if I get the form wrong and the process just says no straight away and I have no option then to re-do it because it will leave a mark on my credit file.

I guess if I have a good credit rating then it should just get referred to a member of staff to review rather than a flat out no?

Thanks

[Deleted User]

If it asks for outgoings, then you don't need to put it down.
If they ask for existing loans and debts, you would.

CP1982 wrote: »

I guess if I have a good credit rating then it should just get referred to a member of staff to review rather than a flat out no?

It doesn't quite work like that. They'll review your application against their own criteria and decide to accept or decline. A credit rating given to you by another company (e.g.a CRA) won't carry any weight - or indeed even by visible to them.

Thrugelmir

Whether you actually contribute to the loan repayments or not is irrelevant. The loan is a potential liability. That you could have to contribute to. Lenders don't underwrite at the micro level just the macro. The loan therefore needs to be declared.

System

CP1982 wrote: »

Hi,

I am preparing to apply for a new loan and want the best chance of being approved whilst also declaring everything I need to. Do I need to declare a joint mortgage even if the payment comes out of my partners account?

Yes and as you are both jointly liable for the full amount of the mortgage that is what you put down as the payment.

I also have a rental property that is in my name only so I will declare that mortgage. Can I then put the rent in the additional income box or is this not allowed because technically it is not guaranteed?

You put it down as additional income because that is what it is, additional income from a business. Work out what your net profit was for the rental property last year and put that down as the income from it if the bills and rent are roughly the same.