Compare joint loans

Looking to take out a personal loan? You may be able to borrow more if you have a partner, friend or family member who’s happy to share responsibility for the repayments.

Many high street banks and other lenders offer joint personal loans. You can find out which lenders offer joint loans using the comparison table below.

Lender Accepts joint apps Loan amounts More information
118 118 Money £1,000 to £5,000 Check eligibility
1plus1 Loans £1,000 to £10,000 Check eligibility
Admiral £1,000 to £30,000 Check eligibility
AIB (NI) £1,000 to £25,000 Read our review
Bamboo £2,000 to £15,000 Check eligibility
Bank of Scotland £1,000 to £50,000 Read our review
Barclays Bank £1,000 to £50,000 Read our review
Creation Financial Services £1,000 to £25,000 Read our review
Danske Bank £1,000 to £25,000 Read our review
Everyday Loans £1,000 to £15,000 Check eligibility
Finio Loans £1,000 to £5,000 Check eligibility
First Direct £1,000 to £50,000 Read our review
Halifax £1,000 to £50,000 Read our review
HSBC £1,000 to £25,000 Check eligibility
JN Bank £1,000 to £15,000 Read our review
Lloyds Bank £1,000 to £50,000 Read our review
M&S Bank £1,000 to £25,000 Check eligibility
MBNA Limited £1,000 to £25,000 Read our review
Monzo Bank £200 to £25,000 Read our review
Nationwide BS £1,000 to £25,000 Read our review
NatWest £1,000 to £50,000 Check eligibility
Norwich Trust Limited £3,000 to £20,000 Read our review
Novuna Personal Finance £1,000 to £35,000 Check eligibility
Royal Bank of Scotland £1,000 to £50,000 Check eligibility
Sainsbury's Bank £1,000 to £40,000 Read our review
Santander £1,000 to £25,000 Check eligibility
Shawbrook Bank £1,000 to £50,000 Check eligibility
Tesco Bank £3,000 to £25,000 Read our review
TSB £300 to £50,000 Read our review
Ulster Bank £1,000 to £50,000 Read our review
Virgin Money £1,000 to £35,000 Read our review
Zopa £1,000 to £35,000 Read our review
Late repayments can cause you serious money problems. See our debt help guides.

What is a joint loan?

A joint loan is any unsecured or secured loan that more than one person takes out. Joint personal loans can be a popular source of finance for anyone making shared purchases. This may be a couple buying a new family car or business partners looking to renovate a shared property.

The main benefit of a joint application loan is that you’ll likely get a larger loan amount or a better interest rate when you share the responsibility of paying it back. This is because many lenders view a joint application as less risky. Your income as a pair is likely higher, and you’re less likely to have trouble repaying the loan.

Joint loans jargon explained

  • APR. The Annual Percentage Rate (APR) represents a summary of the annual cost of a loan, including interest and any mandatory fees. However, lenders only have to offer the advertised APR to 51% of borrowers, and the other 49% could get a higher rate.
  • Interest rate. This is the percentage amount of interest you’ll pay on the loan and can be either fixed or variable. A fixed rate stays the same over time, whereas a variable rate can go up or down over the life of the loan.
  • Liability. This refers to who is responsible for repaying the loan. In the case of joint loans, both applicants share liability and are responsible for the debt.
  • Unsecured loan. An unsecured loan does not require an asset, such as a house, to be used as collateral against the loan.

How do joint loans work?

Joint loans work much like regular loans. You borrow a lump sum that’s repaid in monthly instalments over a set term, and interest is added on top.

However, there are many differences in the application process and your liability as borrowers.

When you apply for a joint loan, both applicants must submit their personal and financial details. The lender assesses both parties with a credit check to see if they can afford the monthly loan repayments based on their income and credit score.

Your application will be assessed on your combined income, meaning you can often borrow more as a joint borrower than if you applied individually.

However, if one applicant has a bad credit record, the lender may reject your joint application, even if the other has an excellent credit score. In this situation, it’s likely better for the individual with the good credit score to apply on their own.

It’s also important to be aware that joint loans make both parties liable for the full loan amount. You won’t only be responsible for your “half” of the loan. If your co-applicant can’t or won’t meet the repayments, the lender can chase you for the remaining balance. This is called “joint and several liability”, and it applies no matter what your relationship with the co-applicant is.

Can you do a joint personal loan?

Yes, many lenders offer personal loans that multiple applicants can take out, who then share the responsibility for repaying the loan. As more than one of you are repaying the loan, you may also find you’re more likely to get approved for a joint loan.

Unsecured joint loans

These are regular personal loans that are offered by banks and other lenders, generally for amounts from £1,000 to £25,000. Most personal loans offer terms of 1 to 5 years, which is the amount of time you’ll have to repay the loan amount.

Secured joint loans

With a secured loan, you’ll need to offer an asset as collateral against the cost of the loan. This means the lender can take ownership of the asset if you fail to repay the loan. When it comes to a joint secured loan, it’s best to offer a jointly owned asset, such as a home or family car.

The advantage of a secured loan is that it’s considered less risky for the lender, meaning you’ll generally receive a more competitive interest rate and be able to borrow more compared to an unsecured personal loan.

Mortgages

A mortgage is a secured loan that is for the sole purpose of buying a property. Mortgages are often issued to joint applicants (for many couples, it’s the only way to access the sums required to fund a property purchase).

Joint loans for debt consolidation

A debt consolidation joint loan might be suitable for couples with separate loans looking to combine their debt into one loan. If you can find a loan with more favourable terms and rates, you may be able to save on interest and can make your debt repayments more manageable.

Bad credit joint loans

If both applicants have a bad credit history, a joint loan may improve your chances of being approved for a loan, as a lender may consider you more likely to meet your repayments than you would as individuals.

Bank account overdrafts

A joint bank account overdraft is another form of a joint loan, and both people are responsible for paying back the amount borrowed.

Who is eligible for a joint loan?

As with any other type of loan, both applicants must meet certain eligibility criteria to apply for a joint loan. All applicants will need to:

  • Be at least 18 years old
  • Be a UK resident
  • Have a UK bank account
  • Different lenders also have different criteria you’ll need to meet, which may include a minimum income requirement. You may also need to describe and provide evidence of your relationship as part of your application.

You can use Finder’s eligibility checker to check your eligibility for a range of personal loans.

Things to consider before taking out a joint loan

Before taking out a joint loan, consider its effect on your credit rating. When you take out a joint loan, your credit report is linked to the other borrower’s. If they have poor credit, it can impact your chances of getting a loan in the future.

Also, remember that you’ll both be responsible for repaying the loan in full. That means if your partner dies and there is not enough in their estate to cover repayments, you could be left footing the whole bill yourself.

For the same reason, you should consider whether you fully trust the person you’ll take out the loan with. Consider how long you’ve known them and how much you know about their financial situation. After all, if they refuse to or can’t meet the repayments, it’ll be up to you to pay the loan back in full.

Pros and cons of joint application personal loans

  • You might be able to get a larger loan amount
  • It might be the only way you qualify for the loan you need
  • It could be easier to afford repayments
  • You might be offered a more competitive interest rate
  • You’re both liable for the debt, so you might end up repaying the loan on your own if the other party is unable to pay
  • Your credit report becomes linked with the co-applicant – if they have a poor credit rating, this can affect your chances of taking out a loan on your own in the future
  • If you cannot afford your repayments and you end up missing some, this could negatively affect both credit ratings
  • There’s a smaller choice of lenders to pick from

Can you get a joint loan with bad credit?

Yes, you can get a joint loan with bad credit. As explained above, applying for a joint loan may even improve your chances of being approved if one, or both, applicants have bad credit.

However, if only one of you has bad credit, there can be some implications for the other applicant, as applying for a joint loan will link your credit files together and show up on credit checks.

If you are declined due to a poor or limited credit history, you can use our guide to find out what will help you improve your credit score.

Personal loan cost comparison

Loan amount: £10,000

  • Loan term: 5 years
  • Interest rate: 14%
  • Monthly repayment: £228
  • Total interest: £3,706

Loan amount: £10,000

  • Loan term: 5 years
  • Interest rate: 22%
  • Monthly repayment: £265
  • Total interest: £5,913

How to compare joint personal loans

  1. Consider the maximum amount each lender will let you borrow, the term length and the interest rate.
  2. Find the shortest deal where you’ll comfortably be able to meet the monthly repayments. The shorter the term length, the less you’ll pay in interest.
  3. Have a look for the “total payable”. This is the full amount you’ll pay to the lender (capital plus interest and any fees). This figure is the best for comparing deals.
  4. Most lenders will publish minimum eligibility criteria for personal loans. If you can’t meet these as a pair, don’t waste time applying, as the lender will turn you down. Too many credit applications in a short time can make you look desperate for credit and make it tougher to be approved by the next lender.
  5. If you’re hoping to clear the loan ahead of time, factor early repayment terms into your comparison. In many cases, lenders charge an additional month or 2 months’ interest on any overpayments, so preferential early repayment terms could be worth more to you than a fractionally better interest rate. Keep in mind that even if one of you decides to repay some of the loan early, you’ll still be jointly liable to repay the remainder.

Bottom line

There are many benefits to taking out a joint loan – you might be able to borrow a larger sum, and you might secure a more competitive interest rate than you would if you borrowed individually. Plus, paying back the loan might be more affordable.

However, taking out a joint loan needs to be considered with care. Remember that you’ll both be liable for the whole loan amount, so always consider and discuss the risks with your partner first.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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