Joint Loans
If you are in a relationship or married, you are eligible to apply for a joint loan together. Joint loans are one way to raise finance for any purpose you require. You can apply for a loan on your own, however you are more likely to be eligible to borrow a larger amount of money if it is a joint application. This is because the lender will determine how much money to offer you according to your income. If the income is a joint one, it'll be larger than a single salary.
The loan lender will require the details from you and your partner in order to process the joint loans application, but once they have all the information, you should get an answer in principal very quickly. If you and your partner have a bad credit history, you may not be accepted for a joint loan. If you are, you are likely to pay a higher APR rate than those people with better credit. Even if you have good credit and your partner doesn't, or vice versa, you may still have to pay a slightly increased rate of interest back on any money borrowed. Don't forget though that you will be offered an amount, and if you aren't happy with the terms, you can choose to decline the offer and look at other options.
What information will the lender need from us?
The joint loans application will require you to have the following details handy: Both your incomes, names, dates of birth and the addresses you have lived in for the past 3 years. They will also take into account if you are a tenant or homeowner, how much you wish to borrow jointly and how long you need to repay the loan back.
How long does it take to get a joint loan?
If you are accepted, it will depend on whether your joint loan is an unsecured one or if it is secured on your home as to how quickly you will receive the money. A secured joint loan is obviously only applicable for those couples who are paying a mortgage and can take longer (about 4 weeks), whilst an unsecured loan can be approved and completed and the money in your account within 7 days.
Joint loans mean that you both have an equal responsibility to pay back the loan in full, you will both be liable to fulfill the monthly repayments, even if for some reason you separate. It is worth getting a legal agreement drawn up so neither of you end up getting left with the burden of the loan.
If you are having trouble with a joint loan you took out, the Citizens Advice Bureau may be able to offer you help and advice.