Joint loan

No1Stoney

Hi, just looking for best options here so please bare with me. My partner currently gets offered a great APR of 9.9% for a loan with her bank Halifax. We share all of our finances together and she would like to apply for a loan that we both pay for out of our salaries as, of course she doesn't want to take on the loan herself in case anything happens in the future (breaking up etc). Instead we want to be joint liable. I currently bank with LLoyds and my credit score is a bit below average, her score is good. If I was to go into a joint account with her bank at Halifax, would it deem her more of a risk applying for a loan? We was hoping this might be a good way of getting a loan that we were jointly responsible for, and maybe something the banks see favourably? But I don't want to hamper her credit score too much etc.

Not only would be use the joint account for that. We would use the account to bring my salary into and pay all the bills from, and use my LLoyds account as a saver account only.

Any advice on that option would be gratefully appreciated. Many thanks.

dealer_wins

If it were my and the loan was for my benefit (ie car for me etc) I would take out the loan in my own name at a higher rate.

IMO its wrong to ask your partner to take out finance for you, as in the event of a bad breakup it will cause big problems.

If the loan is for joint benefit, and she understands and is happy with the risks, then at least sign something stating that you are jointly responsible for the repayments and give it to her.

Apples2

Joint liability doesn't mean she would only be responsible for half of it.

If you did break up and you didn't pay, she would be liable for the entire debt.
This commonly happens when someone with a "bit below average" credit rating breaks up, they can no longer afford anything so the other party ends up carrying the can.

I vote for keeping it separate, if it is your car, you pay for it at a higher APR or buy something you can afford for cash.

No1Stoney

Thanks for your answer Apples2. I had thought of that. Just wanted some clarity really. I know I wouldn't be responsible for half of it, but all of it, that for me isn't an issue. The car would be used by us both but her name would be on the ownership form for the car. Just thought maybe it would help us get a better deal for a loan.

Pixie5740

If you get a joint account then you will become financially linked and this would affect her credit report (and yours). How much I don't know, I guess it depends how "bad" your credit history is.

CLAPTON

buy a cheaper car

SuperHan

No1Stoney wrote: »

Thanks for your answer Apples2. I had thought of that. Just wanted some clarity really. I know I wouldn't be responsible for half of it, but all of it, that for me isn't an issue. The car would be used by us both but her name would be on the ownership form for the car. Just thought maybe it would help us get a better deal for a loan.

The point Apples is making is that there is no benefit in a joint loan. It means you are both joint and severally liable, so that if one person doesn't pay, the other person has to pay it, so you're no more liable than if she took at the loan herself in reality.

arbroath_lass

It doesn't matter if the loan is joint. If you split up and stop paying she's liable for the whole lot. The only way I can see to do what your girlfriend wants is two individual loans for half the amount each.


Your girlfriend won't make your credit rating better, you'll make hers worse. If I was her I'd be making sure we had no joint finances until you've sorted your credit report out.

jonesMUFCforever

arbroath_lass wrote: »

It doesn't matter if the loan is joint. If you split up and stop paying she's liable for the whole lot. The only way I can see to do what your girlfriend wants is two individual loans for half the amount each.


Your girlfriend won't make your credit rating better, you'll make hers worse. If I was her I'd be making sure we had no joint finances until you've sorted your credit report out.

I think you are wrong here. If it is a JOINT loan then they will be both jointly and severally liable for the debt - it will not matter who's account the repayments come out of.

arbroath_lass

jonesMUFCforever wrote: »

I think you are wrong here. If it is a JOINT loan then they will be both jointly and severally liable for the debt - it will not matter who's account the repayments come out of.

That's what I said. Or at least meant to. A joint loan doesn't put the OP's girlfriend in a better position than a loan in her name.

dealer_wins

shaddisi23 wrote: »

We allotment all of our affairs calm and she would like to administer for a accommodation that we both pay for out of our salaries as, of advance she doesn't wish to yield on the accommodation herself in case annihilation happens in the approaching (breaking up etc). Instead we wish to be collective liable. I currently coffer with Lloyd s and my acclaim annual is a bit beneath average, her annual is good. If I was to go into a collective annual with her coffer at Halifax, would it account her added of a accident applying for a loan? We was acquisitive this ability be a acceptable way of accepting a accommodation that we were accordingly amenable for, and maybe something the banks see favorably? But I don't wish to bassinet her acclaim annual too abundant etc.

dgdfgd bgg fdffv re ghh gkkj ssef bbgeikih dseee

(makes more sense than your post lol)