Learn How You Can Get Cheaper Joint Loans

We'll review the best joint loans in the UK and help you to compare joint personal loans so you can make the right choice for both you and your partner's your shared needs.

The key point with joint loans is every party who has signed the loan agreement will be jointly and equally responsible for the repayment, even if one person defaults, you will still be both fully liable for payments.

Joint loans and the lenders' perspective

But, having more than one person as a loan applicant may mean you able to apply for a larger loan or have better interest rates, and banks are more willing to lend to two or more borrowers together. The reason being is that their investment or risk is spread jointly across two people's assets as there are potentially two available incomes.

And similarly, for joint unsecured loans, having two incomes makes a loan default more unlikely, so depending on your relationships and loan purposes, you're more likely to be able to access better rates than the standard personal loans for individuals.

The relationship between borrowers can be taken into account when applying for a joint loan, as certain lenders will only offer joint loans to for example, blood relatives or married couples, and other providers have a different set of lending criteria.

Whilst joint loans for couples will still be available even if you aren't legally registered as being married, this can sometimes, although not always, narrow down your options.

Your circumstances in a nutshell

Your combined circumstances are obviously an important factor as well, so you should consider what you want to borrow towards. Even with two incomes, there is still a limited availability of poor credit joint loans so it may be well worth considering some of the specialist bad credit lenders. Likewise, for certain lenders, consolidation loans for couples will only be available as secured loans.

Key considerations to find the cheapest joint loan:

• the amount being borrowed;
• the loan term;
• the interest rates;
• how much is affordable for you to repay in total (factoring in early redemption charges (if it's likely you will clear the loan before the loan's official end date);
• the monthly repayments are affordable;
• the lender's terms and conditions.

Note that if your loan does not fall inside lender's headline APR limits, you could be offered a different rate. It's more than likely the rate which will be applied to your loan will be dependent on the lender's view of both borrowers' combined credit standing so if one or more of you have a less than exemplary history of credit repayments you could find yourselves paying much more.

You can use the above points as a guide to narrow your loan comparison search down into which lender's are available for you as a joint loan and to prioritise which types of loan are being offered. After this, compare which features are offered to find the best joint loan for your both your shared needs.