We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Can you split a loan

Caravangeek
Caravangeek Posts: 1 Newbie
in Loans
If my husband and I make a joint application for a loan the interest rate is 7% because of the size of the loan. Is it possible to split the loan and make 2 individual applications for half the amount each thereby reducing the interest rate on each loan to 3%

Comments

  • DCFC79
    DCFC79 Posts: 40,644 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 1 February 2018 at 9:49AM
    Caravangeek wrote: »
    If my husband and I make a joint application for a loan the interest rate is 7% because of the size of the loan. Is it possible to split the loan and make 2 individual applications for half the amount each thereby reducing the interest rate on each loan to 3%

    All depends what rates you get offered but yes it's ok to both make a single application.
    It's not guaranteed you will both get the headline rate or even be accepted at all.

    I take it you have a joint bank account, I believe it would link you financially which may or may not impact what your offered.
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    Not according to Martin. The best loan rates at 3-5k is 5%.

    https://www.moneysavingexpert.com/loans/cheap-personal-loans#3k5k
    Thinking critically since 1996....
  • JJG
    JJG Posts: 346 Forumite
    Part of the Furniture 100 Posts Name Dropper
    somethingcorporate wrote: »
    Not according to Martin. The best loan rates at 3-5k is 5%.

    https://www.moneysavingexpert.com/loans/cheap-personal-loans#3k5k

    Where did they suggest that they were wanting a loan between 3 and 5k? From the figures quoted it seems like they want a loan for over £25k. Or two loans for half that.
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    JJG wrote: »
    Where did they suggest that they were wanting a loan between 3 and 5k? From the figures quoted it seems like they want a loan for over £25k. Or two loans for half that.

    Clearly misread the 7% as £7k - doh!! :rotfl:
    Thinking critically since 1996....
  • kimplus8
    kimplus8 Posts: 999 Forumite
    Ninth Anniversary 500 Posts Name Dropper Photogenic
    You can make a joint application and you will be jointly responsible for the full amount should you situation change at all, or you can make 2 separate applications for the money and you may have varying interest rates depending on the risk that the lender determines that you are as individuals.
    HTH
    Just a single mum, working full time, bit of a nutcase, but mostly sensible, wanting to be Mortgage free by 2035 or less! £196,000/£177560 to go
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.5K Banking & Borrowing
  • 254.2K Reduce Debt & Boost Income
  • 455K Spending & Discounts
  • 246.6K Work, Benefits & Business
  • 602.9K Mortgages, Homes & Bills
  • 178.1K Life & Family
  • 260.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture