how to best present home ownership / living situation in credit card application

cocopop100

hello.  I'm trying to apply for a credit card and would love some advice on how to present my slightly complex living / home ownership situation.  I own a property which I'm renting out and I'm living with my parents rent-free.  However I can see from the MSE credit club report that 'living with parents' is looked upon unfavourably by lenders and seen as 'risky' (although actually my situation means I have much more disposable income!). Would I be better to say I'm a tenant?  Or just put home owner and the cost of my mortgage?  Thanks!

martinbainbridge1975

you are a home owner, that is how i would input on the application

DullGreyGuy

martinbainbridge1975 said:

you are a home owner, that is how i would input on the application

By that logic they should put the rent they are receiving into the next "rent" box

It really comes down to the question asked, in most cases it asks you to give the postcode for your current home address and then only after confirming the address asks you how long you have lived there and your residential status. On Barclays when you say you've lived there under 3 years it then asks for your previous address and again repeats the time lived there and residential status. To me this is therefore clearly asking in relation to that address not in general and so saying you are "owner occupier" would be false in the OP's case (options on Barclays is Owner Occupier, Unfurnished Tenant, Furnished Tenant or Living with parents)

Cisco001

DullGreyGuy said:

martinbainbridge1975 said:

you are a home owner, that is how i would input on the application

By that logic they should put the rent they are receiving into the next "rent" box

It really comes down to the question asked, in most cases it asks you to give the postcode for your current home address and then only after confirming the address asks you how long you have lived there and your residential status. On Barclays when you say you've lived there under 3 years it then asks for your previous address and again repeats the time lived there and residential status. To me this is therefore clearly asking in relation to that address not in general and so saying you are "owner occupier" would be false in the OP's case (options on Barclays is Owner Occupier, Unfurnished Tenant, Furnished Tenant or Living with parents)

Could OP choose 'finished tenant' and treat himself as lodger?

[Deleted User]

It's not asking if you own property - It's asking where you live.
If you live with your parents/family then that's what you're doing.
You can't be living somewhere and also fully renting that same property out.

NoodleDoodleMan

"You can't be living somewhere and also fully renting that same property out."

Looks as if he's renting out an owned property and living elsewhere with parents ?

[Deleted User]

NoodleDoodleMan said:

"You can't be living somewhere and also fully renting that same property out."

Looks as if he's renting out an owned property and living elsewhere with parents ?

The answer to the OP is fairly simple - they just want to have their cake and eat it too.

cocopop100

Thanks for all your comments.

Sorry - I guess my original post wasn’t super clear. I own a property which I used to live in but I decided to start renting it out at the beginning of Covid and move in with my mum for both personal and financial reasons. I certainly don’t feel like I’m “having my cake and eating it” as the flat rental barely washes its face with mortgages as they are and I’m a solo parent and we all know about childcare costs!!!

So from what people are saying I really need to just put “living with parents” as that is the true representation of my current address. 

The only reason I’d asked the question about whether this was the best thing to put was because the MSE credit report told me ‘living with parents’ is seen as “risky” as the assumption would be that I don’t own a property which is seen as more stable. But the questions on credit card applications don’t allow for much variation. It’s a shame there isn’t an option which is something like “do you own a property?” !

if anyone has any other advice on how I can best present my situation I’d be very grateful. My current address (with my mum) is where I’m registered on the electoral roll so presumably I need to reflect my status in relation to this living arrangement. 

And thanks to those who have already shared their wisdom. Much appreciated.

NoodleDoodleMan

[Deleted User] said:

NoodleDoodleMan said:

"You can't be living somewhere and also fully renting that same property out."

Looks as if he's renting out an owned property and living elsewhere with parents ?

The answer to the OP is fairly simple - they just want to have their cake and eat it too.

I was pointing out that he indicated that he was not staying in the same property as he owned and renting it out as well.

That would not have made sense.

born_again

cocopop100 said:

Thanks for all your comments.

Sorry - I guess my original post wasn’t super clear. I own a property which I used to live in but I decided to start renting it out at the beginning of Covid and move in with my mum for both personal and financial reasons. I certainly don’t feel like I’m “having my cake and eating it” as the flat rental barely washes its face with mortgages as they are and I’m a solo parent and we all know about childcare costs!!!

So from what people are saying I really need to just put “living with parents” as that is the true representation of my current address. 

The only reason I’d asked the question about whether this was the best thing to put was because the MSE credit report told me ‘living with parents’ is seen as “risky” as the assumption would be that I don’t own a property which is seen as more stable. But the questions on credit card applications don’t allow for much variation. It’s a shame there isn’t an option which is something like “do you own a property?” !

if anyone has any other advice on how I can best present my situation I’d be very grateful. My current address (with my mum) is where I’m registered on the electoral roll so presumably I need to reflect my status in relation to this living arrangement. 

And thanks to those who have already shared their wisdom. Much appreciated.

Only thing here is saying living with parents, when the credit check is going to show a mortgage is going to flag up. 

Just how are the application questions worded by the bank?

Maybe better to phone the application through & let them decide after your explain your situation.