Standard mortgages and remortgages are quite similar to each other. The differences that remortgages involve getting a new loan from a different lender from the one that you currently have. When you obtain a remortgage, you use the funds from the new loan to pay off the old mortgage lender, which still leaves you with a mortgage payment to make except that you’re making it to a different lender.
Joint remortgages are new mortgages issued to several individuals it wants, each of whom is jointly responsible for making the payments on the new loan. If one party fails to make his or her share of the payment, the full responsibility still remains with the other parties to the loan. It is usually easy to be improved for a joint remortgage if you are already party to a joint mortgage on your house.
Any new mortgage being considered is subject to credit checks being performed by the lending institution, and the same is true for joint remortgages. The main difference with a joint remortgage is that several credit checks must be performed, one for each of the applicants. If credit problems are found with any of the individuals, the joint remortgage application might be denied, even if the remaining applicants have excellent credit records. In such a case, adverse credit remortgages might be available as a viable alternative.
In a similar way, the bank will closely examine the incomes of each of the applicants for a joint remortgage. With joint remortgages, each of the parties is jointly responsible for making payments, so the bank will want to make sure that each of the parties demonstrates the income necessary to make the payments on their own, in case one or more of the others can’t follow through on their obligations.
It is the ability to combine incomes that leads many people to pursue a joint remortgage. By teaming up, they hope to be able to convince the lender that they can indeed afford larger payments then each of them would be able to handle alone. The same technique can be used to obtain larger second mortgages as well.