Joint Loans

Put simply, these are loans with more than one applicant. Most joint loan lenders usually allow 2 people to take out a loan together.

Joint loans are typically used by 2 people who have a close and trustworthy relationship. For example, couples or family members.

Joint loans come in many forms, such as mortgages, unsecured loans, secured loans, and joint current accounts with an arranged overdraft.

Most joint loans are designed for couples, or 2 people with a close relationship. With more than one applicant, you could increase the amount you can borrow as there are multiple sources of income or more collateral on your application.

Both applicants are equally responsible for the repayments on a joint loan. However, repayments are not taken as a 50-50 split from each applicant. Instead, both parties are responsible for the full repayment amounts combined.

If you want to borrow money but are concerned about managing the repayments alone, you could consider a joint loan with someone you trust.

Sometimes less than perfect credit can affect your ability to get a loan. Some joint loans for bad credit could help, especially if you apply with someone who has a significantly good credit rating.

Another reason people use joint loans is to potentially increase their borrowing amount. In some cases, you can borrow much more with joint loans than you could with an individual loan. For example, some joint loans are used to consolidate debt.

Yes – some lenders offer joint loans specifically advertised to couples. Most joint loans are used by couples.

Yes – some UK direct lenders offer joint loans.

Some lenders may offer joint loans as an option for someone with bad credit. However, you still won’t get your funds until the lender is convinced you can afford to repay your joint loan.

A responsible lender will always carry out affordability checks before offering you a joint loan. If your credit score is significantly poor, you may not pass your affordability check. In this situation, we recommend you seek free and impartial advice to help get your credit rating back on track.

With UK joint loans, each applicant is equally responsible for the repayments, even if the relationship breaks down.

In this situation, you would both still have to make your joint loan repayments. If your circumstances change and one person refuses to pay or cannot repay their share of the loan, the other person must make up for this.

Therefore, you must make sure you apply for joint loans with someone who you can really trust.

Also, if you struggle to make repayments on a joint loan, each person’s credit rating is likely to be seriously impacted. This could make it harder for you to obtain credit in the future.