Joint Loans in the UK

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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.

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A lot of people in the UK take out loans together and its particularly familiar or couples. While you don't need to be in a relationship, married or in a civil partnership with the other borrower, securing loans is something that has to be taken seriously - so be sure that the person is someone you trust. But there are certain advantages that you can indeed enjoy when you apply jointly instead of applying alone, and there are also things that you need to consider to get approved and below we will tack all of them.

get a joint loan for couples

Why opt for loans

First, let's talk about some of the reasons why you would want to opt with a joint loans. While there are certainly numerous loan options that you can choose in the UK today, loans are ideal financial products  for your because:

  1. They are easier to repay. Because there are two people involved in the loan, it makes it easier to repay and manage. Normally, lenders will check your income and determine whether or not it can afford the required monthly payments. If the payments are too much for your income to sustain, having another income-earning borrower will not only improve your chances of getting approved but also in paying it back in the agreed terms and conditions.
  2. They can improve credit. If your co-borrower has a stellar credit rating, then this could help you a lot in securing a reliable loan with favourable rates and terms. It is because lenders tend to favour borrowers with a long history of borrowing and to repay on time since they are less risky and are less likely to default on their loan.
  3. They can bring more assets. Two people can pay more assets on a loan deal than one. They may choose to offer extra cash for a more significant down payment or put up collateral that they own to secure a loan.
  4. They can share responsibility. Sometimes, it seems reasonable for borrowers to apply if they are couples. Besides, it's easy for married people to consider loans as everyday items or decisions in which they share equal responsibility.

Loans and guarantor loans

loans and guarantor loans share some similarity in a way that another person plays an important role in securing the funding that you are looking. The person shares an equal responsibility with you on paying back the loan which provides additional security to the lender and improves your chances of getting approved. The similarity between loans and guarantor loans, however, stop from here.

The guarantor on a guarantor loan has the same responsibility on your loan's repayments but does not have any take on the money or the property that you purchase using the loan proceeds. With a joint loan, both borrowers are often (although not always) joint owners of whatever is purchased with the loan. The guarantor simply takes all of the risks without enjoying any benefit in return. The guarantor does not hold any power on the property, can benefit from it, or make decisions regarding the property.

Loans without a guarantor

When you take out loans without a guarantor, you and the person you’re applying with will need to share some personal, employment and financial details relevant to the lender's eligibility criteria. This can be accomplished through a single application or separate one. In the end though, the lender will evaluate the application as a whole when determining whether or not both of you are eligible for a loan. Before you and your co-borrower apply for loans without a guarantor however, there are a few things to consider:

  • Once the application is approved, both you and your co-borrower will share equal responsibility for the loan. This means that if either one of you decides to default from the loan, the other one will become responsible for the whole repayments.
  • Both applicants will have to satisfy the lender's eligibility criteria. It means that having proper credit is essential for both you and your borrower especially when you are taking out a joint personal loan although this may not hold true in all loan options such as lousy credit loans.
  • Joint applications can help you access more substantial loan amounts. However, it would still be best only to take out what you need and no more to avoid falling into an unmanageable debt that both you and your co-borrower would suffer.
  • Loans without a guarantor is a serious commitment. Your co-borrower must be someone that you know and trust. The person must also have a stable job or income stream and must have a good history of managing credit. If you think that the person is likely to default from a loan for various valid reasons, then find another one that is more suitable.

The available options

Now that you know some of the important things that need to be considered before taking out loans without a guarantor, here are some of the options that are available in the UK market today that you can look into. Depending on you and your co-borrower's needs and present circumstances, you can take out loans that are:

Joint Borrowing To Consolidate Debts

If either you and your co-borrower has been in a tough credit situation where credit cards have built up and store cards and personal loans are wrecking havoc in your finances leaving the household bills and other essentials difficult to cover, you can refinances all these debts into one joint loan so you or your borrower can enjoy a single, easy to manage loan that can bring in that much needed breathing room. This can relive all the stress and anxiety involved in dealing with numerous debts and repayments all at the same time. And if your joint loan has a lower cost than the combined cost of all your previous debts, you can actually save more money as a result.

Any Purpose Loans

The loans can be used for any purpose you want whether it means covering unforeseen bills, purchasing an expensive gift, or paying for a vacation. The loan however, must be used for legal means and must be suited to your financial circumstances - getting approved will depend on your income level and affordability rather than your financial goals. The loans are also typically unsecured which means that you won't need to offer any form of collateral to secure them.

Home Improvement Loans

Need to make some improvements in your home? Perhaps a new bedroom, more modern living room, bigger garage, or even a poolside addition? If you are, then taking out a joint loan could be just what you need. If both you and your co-borrower owns the property and has equity on it, then it makes perfect sense to invest on that property to bring out its full potential as a permanent living space for you and your family for many years to come. And if your co-borrower happens to be your spouse, there are plenty of lenders in the UK who have significant experience in matching couples with the ideal joint homeowner loans.

Tuition fee Loans

In the UK, it is popular for couples to apply for loans with the hopes of providing their children with the best education they can to help secure their future. Paying for your child's schooling can be expensive especially if you're looking to enrol him or her on a private university or in a specialist school for the gifted and talented. If you currently do not have the money to get your child to the finest schools in the country, there are loans for tuition fees that you can avail in the UK today so you can maximize your child's potential.

Joint Mortgage Loans

Joint mortgage loans allow you to purchase a property with one or several people by getting a mortgage in the names of all the people involved. Once the loan is approved, every person named on the mortgage will share equal responsibility on the loan's repayments. It is up to you and your co-borrower(s) on how you will divide the equity in the property after its purchase. Joint mortgage loans are typically used by couples in the UK however but are available to both married and unmarried couples and civil partners as well.

loans for Bad Credit

If you have bad credit, then you know how challenging it would be to secure a loan from a bank or any other lender. If such is your case, then you might want to consider taking out loans for bad credit if you can find someone who would be happy to apply with you. There are plenty of ways in which a joint loan can work on your advantage if you have bad credit:

  • First, the lender will evaluate your application based on both your credit scores. This means that if your partner has a strong credit rating, you can still get approved for a joint loan even if you have bad credit since the combined score can be stronger than your own.
  • Both your incomes will also be taken into account which means it will be easy for to pass the affordability checks and requirements. And if both you and your partner have high income levels, then it would be easy to get approved for a joint loan and for larger amounts. Higher loan amounts are something of a rarity when you have bad credit.
  • When you take out a joint loan with a co-borrower, both of you will need to sign the credit agreement and share equal responsibility which means it would be easy to keep up with the repayments. If you find it hard to keep up with your payments, you can request your partner to shoulder the payments until you find the financial breathing room to get back to your payment duties.

If you intend to take out a joint loan for bad credit, there are plenty of specialist lenders online that can cater your application. Whether you’re looking to finance a car, home renovations or a holiday, there are also plenty of bad credit loans that you can choose from to satisfy your need for funding despite your adverse credit rating. Bad credit personal loans are one of them and getting a co-borrower can help you land the best deals even if you have bad credit.

Loans from Direct Lenders

Majority of loans from direct lenders allow you to apply online or over the phone. The application process is similar to getting a loan on your own, but both you and your joint loan partner will need to provide:

  • Personal details, including your names, addresses, and dates of birth.
  • Employment status, including your income level, the nature of your employment, and the location.
  • Permission to conduct a credit check, which will examine you and your partner's credit reports to determine borrowing and payment history.

The information that both of you provide will have a strong impact in whether or not your application for loans from direct lenders will become approved. It will also affect the kind of rate and the amount you can enjoy. The better your credit scores and income level, the better the rates and the higher the amounts you can access from loans with direct lenders.

Finding the right joint loan from a direct lender

To find the loans from a direct lender that are ideal to you and your co-borrowers present circumstances, there are several things that you need to consider before making an application and they include:

  1. The amount you can borrow: The amount you can borrow will depend on numerous factors including the type of joint loan, your eligibility which includes both your income level and creditworthiness, and the lender providing it as well. Simply put, find a joint loan from a direct lender that offers you the amount that you need and no more and no less.
  2. The loan term you need: The longer the time, the lower your monthly payments will become. However, you will save more in interest rate payments if you choose a shorter term. Choose one that is ideal for your budget. It should not be quick enough to become a burden on your monthly budget but not long enough that it would be too costly in the end.
  3. The rate: Obviously, you want to avail for a joint loan from a direct lender that offers the lowest interest rate since this will mean lower costs in paying back your mortgage. Try to shop around and rely on the information provided by comparison sites to find the direct lenders that offer the cheapest rates for loans.

It's important to note that you can also rely on the services of a broker to do your search for the ideal joint loan quicker and easier. If you manage to find a reputable and reliable broker, you can get access to some of the most innovative and up to date joint loan products available in the UK with instant approvals and funding.

Loans in the UK and loans with instant funding

If you are in an emergency situation and taking out a joint loan is the best option to consider in securing that funding that you are looking for, banks and other traditional lenders might not be the best solution. Besides, it can take a few weeks or more for banks to process your joint loan and by that time it might be too late for you to cover those emergency expenses. With that being said, there are loans in the UK and loans with instant funding that you can look into if its speed and ease that you are after. These financial products are typically offered by online lenders and applying for them will only require a number of simple steps such as:

  1. Visit a lender's website and try to see if you and your partner qualify for a joint loan with instant funding.
  2. If both of you meet the qualification, merely apply and enter the information that is required.
  3. Choose the amount and term that you need.
  4. Complete the online application with information about yourself and your co-borrower which includes both your info, employment status, and addresses.
  5. Once you have completed the application, directly submit it and wait for a response from your lender.
  6. The lender will then evaluate your application and run some checks to verify the information that you and your partner has provided.
  7. Once approved, you will get the cash from your bank account on the same day!

But never forget to only take out instant loans in the UK and joint investments with immediate funding from lenders that are licensed by the FCA or Financial Conduct Authority to ensure that you and your partner's interests are safe.

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