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Understand what a joint loan means for you

Everything you need to know before taking out a joint loan

Secured Loans > Our Loans > Joint Loan > Everything you need to know before taking out a joint loan

Before you take out a joint secured loan, make sure you’re aware of all the facts first.

There are plenty of reasons taking out a joint loan makes sense. If you share a mortgage with your partner, applying for a secured loan together could boost your eligibility and allow you to borrow more.

Before you apply, here’s what you need to know:

You’re both responsible for the repayments

A joint loan means you’re both responsible for making sure the repayments are made – on time, every time. Even if your partner is planning to take care of the loan, you’re still obliged to make the repayments if they can’t.

Before you agree to the loan, it’s always worth considering if you can both single-handedly cover the full cost of the repayments. If not, it might be too much of a risk.


You could end up with the entire loan

While you both agree to repay the loan, circumstances could mean you’re responsible for every penny. For example, while it’s unlikely, your partner could refuse to make any payments towards the loan. The lender could ask them for payments, but they’ll still expect the full payment.

While it’s sad to think about, you’ll also still be liable for the loan repayments should the worst happen, and your partner passes away. It’s important to think about what this could mean for your joint loan, as difficult as it may be.


Your credit reports will become linked

When you apply for a joint loan, you’ll be linked together by your credit reports. This means that when lenders view your credit file, they’ll be able to see your partner’s credit history and how they’ve handled their finances.

This generally isn’t an issue in itself, however it could affect the way lenders view you when you apply for finance in the future. If your partner has had issues with credit, some lenders could worry you’ll risk your own finances to help them out.

Once the loan is repaid in full, you can ask your credit reference agency to remove your partner from your credit report. This is called a ‘notice of disassociation’ and can help improve your eligibility for credit in the future.


You don’t need to be married

It’s important to remember you don’t need to be married to apply for a joint loan together. In fact, you don’t even need to be a couple. You could be siblings, friends, or even business partners. As long as you both share a mortgage, you can apply for a joint loan.

Whoever you apply for a joint loan with, it’s essential you completely trust them. Never take out joint finance with someone you aren’t sure will hold up their end of the deal.

Questions to ask before you apply for a joint loan

Before you sign the dotted line for a joint loan, it’s well worth asking yourself these important questions.


Have you checked each other’s credit history?

Many couples apply for a joint loan if one partner has a less than perfect credit score. Applying for a loan together can boost your eligibility if one partner has a better history of dealing with credit.

However, it’s really important you’re aware of any bad credit issues before you apply for joint credit. As a bad credit score can indicate problems with repaying debt, make sure you’re confident history won’t repeat itself. Plus, your partner’s credit history will be linked to yours – so you’ll need to be comfortable with this before you apply.


Can you trust your partner with finances?

Sharing a loan is a big responsibility, so it’s important you’re both sure you can trust one another.


Can you afford the loan in full?

Should the worst happen, can you afford to handle the repayments on your own? As you’re both agreeing to take full responsibility for the loan, you’ll need to be sure you can manage the repayments with your own finances.

Joint loans with Evolution Money

At Evolution Money, it’s simple to apply for a joint loan. We’ll work with you and your partner to find a loan that suits you both – whatever your credit score.

Simply get in touch with our friendly team today or head over to our simple application form to get started.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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