Joint loan

You can use a joint loan for just about anything. For example, perhaps you’d like to do some home improvements, pay for your dream wedding or buy a car. However, there are some restrictions.

We will not lend for:

• Any illegal activity.
• Speculative purchases, e.g. gambling, investments and share purchases.
• Business related purposes.
• The purchase or lease of land or property, either in full or in part. This includes deposits.
• Timeshares/holiday clubs.

These limits apply whether you want to borrow money for yourself, or to support someone else. For example, you can't take a loan and give those funds to a family member as a deposit for a house.

Yes, a joint loan can be a good way to reduce the number of debts you both have. Consolidating your debts means you’ll only have one single monthly payment at a single rate of interest.

However, if you pay off a debt that has a lower rate of interest than the loan then you could end up paying more overall.

We have more information on managing debts and money worries as well as details on applying for a debt consolidation loan as a single applicant.

Taking out a joint loan may mean you can afford a larger amount due to your combined incomes. However, it does mean you are sharing the responsibility of paying it back, so it’s important to make sure it’s the right option for you both.

If you’re approved for a joint loan, your credit files will be linked. If you apply for credit in your own name in the future, a credit search would be able to see the other person’s credit history and take that into account as well as your own. Any missed repayments would also show up on both credit files.

You will also still need to pay the loan back if the relationship between you both comes to an end. Therefore, it’s important you are both aware of your responsibilities before applying.