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Representative 305.9% APR. Representative Example: Loan Amount - £400 | Borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly installments of £187.31.
Interest charged is £161.92, interest rate 161.9% pa (variable)

Joint loans

Joint loans are financial products that are taken out by two or more borrowers – typically couples or business partners. They can be great options to consider if you find it difficult to secure a loan on your own. This is because when you have an extra borrower, there is more income and credit scores at the table, making it easy for you to qualify for a large loan for better terms. There are also numerous joint loan options that you can consider in the UK today and the ideal one may depend entirely on both you and your co-borrower’s needs and present circumstances.joint loans for couples and familiesJoint Loans for Bad CreditIf your individual credit rating is particularly poor, most banks and other traditional lending institutions will turn down your loan request. If you are one of the many people in the UK who have difficulty in securing a loan because of bad credit, you might want to consider making a joint application with your partner or family member who is happy to apply with you.Negating bad credit and moreJoint loans provide numerous benefits to any borrower. Aside from the fact that you will have another person that can help you out in paying off the debt, a joint loan also allows you to:
  1. Your credit standing and eligibility will become more appealing to lenders since it will be supported by those of your partner. If you have a poor credit history, find a co-borrower who possesses an excellent credit score and apply a joint loan together as an alternative for bad credit loans.
  2. A joint application is your best chance of securing funding from a reputable lender. If your partner has a good credit standing and solid income level, you will be able to qualify for the best interest rates and payment terms from almost any lender whether online or offline.
  3. If you have bad credit, lenders will put more emphasis in your income and ability repay the loan. By teaming up with someone who has a high income level or possesses more assets than you, this gives lenders that sense of security that the loan will be paid back on time so they can approve your request for funding.
  4. The loans are ideal if you have bad credit and want to borrow large amounts of money for a major purchase such as a home. This is because combining resources makes it better to be eligible for a property purchase and is highly advantageous if you are unable to buy a home alone, either because of lack of income or credit ratings. The same applies to those who want to own a bigger, upgraded home.
  5. One of the biggest advantages of a joint loan compared to a personal loan can be seen once you begin to pay off the loan. Paying back the money that you owe is easier because you share the same responsibility with another person. Obviously, the mode of payment will depend entirely to you and your partner, such as the exact amount that each of you will need to pay. But ideally, making the proper repayments should be more comfortable for both of you, since there are two of you taking care of it.
It’s important to note however, that if your partner becomes deceased, you will need to pay back any joint mortgage by yourself. The same can be said if you get divorced, get an annulment, separate legally or break up. Also, most joint bank accounts allow freedom of use for both parties which means that your partner can withdraw any amount from your joint account without permission. If you don’t like this kind of set-up, you can try making an account that needs both of your agreements before any withdrawal is made.

Joint loans and Guarantor Loans

It’s easy to become confused with joint loans and guarantor loans since both loan products require someone other than yourself to enter in your loan deal. While it is true that there are a few similarities in both products, joint loans and guarantor loans are unique in themselves.A co-borrower in a joint loan agreement is a direct borrower. This means that:
  • Each borrower holds equal legal responsibility in paying back the entire money that they owe from the lender.
  • Both incomes will be taken into consideration in the application for the loan.
What it means to be a co-borrower in a joint loan
  • If the other person on the joint loan will be unable to keep up with his side of the payment (if the person becomes bankrupt for instance), you will need to shoulder the entire debt until it is completely paid back.
  • It is not the lender’s prerogative to pursue your co-borrower for the repayment of the loan. Both you and your partner share equal responsibility and liability to make the repayments on time.
  • You are entitled to any property or asset purchased with the loan.
  • It the repayments are not made on the agreed terms and conditions, the default will negatively affect both your credit scores.
When it comes to joint loan applications, the lender will take into account your debt to income ratio. If your debts, including that of which you hold as co-borrower, are high, then this could lower your chances of getting approved for another loan. This means that it is extremely important that you consider what benefit you will enjoy when you enter into a loan agreement with someone as a co-borrower. For instance, if the loan is used for the purchase of a car or home, will you be able to drive the vehicle or have equity on that property?What it means to be a guarantor in a guarantor loanWhen you are a guarantor, you will become a co-signee in a loan deal. However, the lender has the legal right to pursue you for payment if the primary borrower defaults from the loan. A default pertains to the event where the primary borrow is unable to pay off the loan on time. In this situation, when the primary borrower fails to meet their repayment duties, the lender turns to the guarantor for the money that is still owed to them. This means that you are only the secondary option for payment when you are a guarantor in a loan deal.So how does having a guarantor help you secure the funding that you need?
  1. When you can afford the loan’s repayments but you don’t have enough deposits or assets at your disposal that you can offer as security. This could potentially help you obtain the home you need sooner rather than later if you are renting, as it would mean that the amount you need to cover for deposits will not be that big.
  2. If you have a bad credit history or a limited one. Bad credit history is the result of missed payments on past bills and debts while limited credit history means that you have not used enough credit to help lender’s determine your credit worthiness.
The difference between a guarantor from a co-borrower however, is that the guarantor does not hold any right to any property or asset purchased by the loan nor does the person have any power on where and how the money should be used. The person is simply there to provide assurance to lenders that the payments will be made which is an essential aspect needed to get approved for a loan.Final thoughts on co-borrowers and guarantorsIf someone asks you to become a co-borrower or guarantor in a loan deal, always consider and treat the loan as if it is your own. Also, it’s always wise for both parties in joint loans and guarantor loans to ask for independent legal and tax advice before entering these kinds of agreements. Keep in mind these essential points when you are considering entering into a joint loan or guarantor loan:
  1. Don’t forget that the biggest advantage in a joint loan is that it would be easier to get approved for loans when incomes and credit scores are combined.
  2. If you qualify for a loan all by yourself because your credit rating and income level is enough to satisfy the lender’s borrowing criteria, you can forgo the help of a co-borrower or guarantor altogether.
  3. All the parties involved in the loan deal will have their credit ratings negatively affected in the event of a default.
Joint loans and guarantor loans are designed to help people qualify for large loans that would otherwise be impossible to obtain alone. Home loans for instance, tend to come in huge amounts that a single person’s income will not meet a lender’s debt to income ratio. It would also