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.
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Read the full methodologyA 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 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.
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.
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.
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.
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).
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.
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.
A joint bank account overdraft is another form of a joint loan, and both people are responsible for paying back the amount borrowed.
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:
You can use Finder’s eligibility checker to check your eligibility for a range of personal loans.
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.
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.
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.
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