Instead of the combined income, the couple, taking out a loan and paying back a certain sum, is it possible for both parties to take out a separate loan for a lesser sum - coming to a larger sum when combined - and paying their separate loans back separatly so that payments are less of a drain on the income?
simple example: instead of 1 x $100 paying back $30
you take 2 x $75 paying back $12 x 2
Possible if you end up living together?
2006-08-28 21:09:37 · 4 answers · asked by Elle Dee 3 in Business & Finance ➔ Personal Finance
It is possible to do this. If the lender is only prepared to loan you a certain amount as joint holders of a loan, it might be possible borrow more if one of you takes out a loan from a lender and your partner / friend takes out a loan with another lender.
However, it's normally more cost effective to take out a joint loan.
2006-08-28 21:23:18 · answer #1 · answered by philturner66 3 · 0⤊ 0⤋
good question, I'm not too sure about this one. but I will be watching to see what other people say.
My assumption is though that I doubt you can as the banks/finance company's will check your details and see that someone else living at the same address has also just taken out a loan and they may feel that a second loan at the same address is too much of a risk for them and so they may refuse the second loan.
2006-08-28 21:20:08 · answer #2 · answered by 90210 aka Hummer Lover 6 · 0⤊ 0⤋
If you don't live together and don't share financial responsibilities, you simply must borrow separately. It may be foolhardy to do otherwise. However, having said that, the more you borrow, the lower the rate - so it is actually better value to borrow more.
2006-08-28 21:26:38 · answer #3 · answered by Bapboy 4 · 0⤊ 0⤋
I don't think so. I the UK banks generally give 3.5 - 4 times joint income, and only 3-3.25 times sole income. Or at least they did when I took my mortgage out!
2006-08-28 21:24:46 · answer #4 · answered by K38 4 · 0⤊ 0⤋