Joint Loan Frequently Asked Questions

  1. CAN I GET A joint LOAN WITHOUT A JOINT BORROWER?

    2. Sorry, you can’t. Share My Loan only provide joint loans – we’re specialists and that’s what makes us dedicated to what we do.

  2. DO I NEED A JOINT BORROWER BEFORE I APPLY?

    3. The loan is provided on a joint basis and therefore both borrowers will need to complete the application form.

  3. HOW IS MY LOAN FUNDED?

    4. At Share My Loan we operate on a peer-to-peer lending platform, matching lenders to borrowers. Peer-to-peer lending means lending money to individuals or “peers”, without going through a traditional financial intermediary such as a bank or other financial institution.

  4. WHAT IS THE ROLE OF THE PLATFORM?

    5. The Platform must also ensure that the Borrowers’ creditworthiness is assessed and that the loan is affordable for the Borrowers throughout the term of the loan.

  5. HOW LONG BEFORE I RECEIVE MY LOAN?

    6. We aim to pay the  money into the joint borrower’s account the same day that your joint application is accepted and cleared.

  6. CAN WE PAY THE LOAN OFF EARLY?

    7. Yes, you will be entitled to a rebate calculated in accordance with The Consumer Credit (Early Settlement) Regulations 2004.

  7. HOW DOES A JOINT LOAN WORK?

    8. Joint loans are unique in that they use ‘joint borrowers’ – who can be family members, friends or colleagues. It is an unsecured loan and both borrowers are jointly and individually responsible for the repayment of the loan. It is very important that both borrowers understand their responsibilities before applying. Borrowers must pay the loan repayments for the term of the loan until the loan has been repaid.

  8. JOINT LOANS AT A GLANCE

    9. A joint loan is an unsecured loan, which means that you do not have to use any of your valuables as security on the loan. The loan is provided on a joint basis, both borrowers are jointly and individually responsible for the repayment of the loan.  Borrowers can be family members, friends or colleagues. At least one of the borrowers must be a homeowner. The loan is not secured against a property.

    With Share My Loan, you can borrow between £2,000 and £12,500 over 1-5 years, depending on the loan amount. We welcome you to experiment with the different loan amounts and repayment periods to see how much the monthly instalments are and how much you’ll pay overall. Once you’ve found the right balance of loan amount and repayment term for your needs it takes just a few minutes to apply.

  9. HOW IS AFFORDABILITY ASSESSED?

    10. The same process is followed for both borrowers. Each will be taken through an income and expenditure assessment by telephone. The assessment will include information of regular income that can be evidenced on a bank statement. All outgoings will be documented which will include rent or mortgage payments, existing credit commitments, utilities bills and everyday living expenses. We ask that both borrowers give an honest refection of their financial situation as they are both jointly and individually responsible for the loan repayments.

  10. HOW IS AFFORDABILITY VERIFIED AND CREDITWORTHINESS ASSESSED?

    11. Both borrowers will be asked to provide a recent 30-day bank statement. A credit report will be obtained for each borrower. Both documents will be used to verify the information provided during the affordability assessments. An assessment of creditworthiness and affordability will be made based on the information gathered, and information provided by borrowers.

  11. WHO CAN APPLY FOR A JOINT LOAN?

    12. Joint loans are open to anyone over the age of 18 who live in the UK. If you’ve been turned down by other lenders or if you have never borrowed before (or have only borrowed a little), then a joint loan can be a cost effective ways of building up your credit history. This is because when you borrow money and demonstrate that you can pay it back in full and on time, your credit rating will get better. This shows other lenders that you are competent and trustworthy in the future.

    We will consider all applications and will look at both borrowers’ credit history before making a final decision. This means those with a poor credit history or those who have not had a chance to build up a credit history yet have a better chance of being approved for credit than with other, more mainstream lenders.

  12. WHAT ARE THE RESPONSIBILITIES OF Joint BORROWERs?

    13. Before applying for a loan, the Borrowers must ensure the loan repayments are affordable for them as both borrowers are jointly and individually responsible for the loan repayments. This means that if one borrower is unable to make the repayments the other will be obligated to pay. The Borrowers should discuss the affordability of the loan before applying to ensure the repayments are affordable and can be made in full for the term of the loan. We expect Borrowers to answer questions during the application process honestly.

  13. HOW QUICKLY CAN MY joint LOAN BE PROCESSED?

    14. The application process should only take a few minutes for each borrower to complete, and once we have received a completed joint application we will aim to get in touch with you within 1 hour during office hours. We operate as a responsible lender, and this means that we will need to speak to you both over the phone in order to make sure we have the correct details and to ask a few further questions as required by law. This helps us to prevent fraud and protects our customers.

    Once we are happy that you can individually and jointly afford the loan repayments and your application has been approved, we will aim to get the money paid out on the same day, giving you the convenience of receiving your loan quickly but whilst also balancing this with responsible lending practices. We’ll make sure you are supported every step of the way, so if you have any questions before, during or after the application process then we encourage you to get in touch.

  14. HOW DO I APPLY?

    15. To apply for a joint loan with us, simply head to Share My Loan Apply page and follow the simple steps. You’ll be able to tailor your joint loan amount and term to suit your needs before you apply so you know exactly what you’re applying for. When choosing a loan amount and loan term, pay close attention to the monthly instalment amount. This is the amount you’ll need to pay back to us for every month of the loan term and it’s important that this is affordable for you both.

  15. WHAT MAKES SHARE MY LOAN DIFFERENT?

    16. Here at Share My Loan we do not charge extra fees and there are no hidden charges either. What you see is what you get and we are committed to making the full process as simple and stress-free as possible. Apply or get in touch today to find out more.

  16. WHY DO YOU ASK FOR MY INTERNET-BANKING DETAILS?

    17. By inputting your details we are able to view up to 90 days of bank account history. This helps us make our lending decisions, assessing whether and if so what amount of credit is affordable and sustainable for you both. As a responsible lender, we work with credit reference agencies to review your creditworthiness. As part of that process, it is important for us to verify each of the borrowers’ income and outgoings. Ultimately, this will help us ensure that you do not fall into difficulties making the repayments due under a loan or incurring further costs and charges. We are only permitted a read-only access to your current account, so will only ever be able to view the recent transactions on your account – nothing more.

    All data is securely handled in accordance with data protection laws by Consents.online and our privacy policy. For further information please click here: https://www.consents.online/Privacy

  17. WHAT HAPPENS TO MY INTERNET BANKING DETAILS AFTER I INPUT THEM ON YOUR WEBSITE?

    18. As an organisation, security of data and prevention of fraud are fundamental to us. We are committed to using practices to ensure that our services are provided within a secure environment. Your internet banking details are encrypted and held securely. We are permitted read-only access to your bank account, so will only ever be able to view your account.

    We do not have the ability to change any of your banking details or set up standing orders/direct debits. All data is securely handled in accordance with data protection laws and our privacy policy.

  18. WHAT HAPPENS TO THE BANK STATEMENTS YOU OBTAIN?

    19. They will be used to make lending decisions about you and stored by us as long as necessary to assist us in underwriting your joint loan application or managing your joint loan account.

  19. HOW MUCH CAN I BORROW?

    20. With Share My Loan, you can borrow from £1000 to £12,500 over 1 to 5 years. This means that you can tailor your loan amount and loan term in order to suit your needs. You can use the handy sliders on our website to play around with amounts and loan terms before you apply in order to see what combination would be best for you both.

  20. HOW LONG CAN we BORROW FOR?

    21. Depending on the amount you want to borrow, you can opt to pay back your loan from 12 months to 5 years (60 months). As mentioned above, the length of time it takes to pay off your loan affects the amount you’ll have to pay as monthly instalments. It’s important to consider this carefully before applying, as loans which would be unaffordable for borrowers are likely to be turned down.

  21. HOW LONG DOES IT TAKE?

    22. The application takes just 5 minutes and if you apply during opening hours then we will aim to call you back within just one hour. Once we are happy that your joint application is complete we will be able to get the money to you on the same day.

  22. ARE THERE ANY EXTRA FEES OR CHARGES?

    23. What you are quoted is what you pay. Your monthly repayment include the interest you pay to our lenders and service fee you pay to cover the cost of running the platform and funding the reserve fund.

  23. WHAT HAPPENS IF THE LOAN INSTALMENTS AREN’T PAID?

    24. If a loan instalment doesn’t come in on time, we will notify both borrowers. The repayments will be collected from the nominated bank account (this will be the account of the first borrower unless agreed otherwise). We will always try to find a solution.

    If we are not able to collect a payment from the nominated bank account, the joint borrower will be obligated to make the repayment. Both borrowers are jointly and individually responsible for the repayment of the loan.

  24. HOW WILL we BE KEPT INFORMED IF A payment is missed.?

    25. The repayments will be collected from the nominated bank account (this will be the account of the first borrower unless otherwise agreed). If a payment is missed both borrowers will be advised by Text, Email and / or Telephone.

  25. DO YOU CHARGE A LATE PAYMENT FEE?

    26. If you fail to pay a monthly repayment we may charge you a fee of £11.50 for each month (or part of a month) that any repayment remains overdue.

  26. WHAT HAPPENS IF we CAN’T KEEP UP WITH THE REPAYMENTS?

    27. If you find yourself in difficulties, then please contact us as soon as you are aware of a problem. We will try and work out a solution with you both. Because our service is personal and flexible, we are more likely to be able to offer you a way to pay that overcomes the problem. Both borrowers will be notified if a payment is not received. Both borrowers are jointly and individually responsible for the repayment of the loan.

  27. WILL BEING A JOINT BORROWER AFFECT MY CREDIT RATING?

    28. Once you have 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 show your joint borrower’s credit history and take that into account as well as your own.

    Payments will be set up to collect from the nominated bank account (this will be the first named borrower unless otherwise agreed). If repayments are missed, the joint borrower will be obligated to make the repayments. if neither of the borrowers make the repayments the missed payment will be recorded on both borrowers’ credit files. If the loan is defaulted a default notice will be issued to both borrowers.

  28. WHAT WILL HAPPEN IF WE CONTINUE TO MISS THE PAYMENTS?

    29. You are both equally liable for the repayment of the loan. If payments are not made by either of you and the account remains in arrears, missed payments will be reported to credit reference agencies against you both and may make obtaining credit in the future more difficult. Missed payments may result in the loan being defaulted.

  29. WHAT WILL HAPPEN IF THE LOAN IS DEFAULTED?

    30. After receiving a default notice both borrowers will have time to make up any outstanding repayments. If these are not paid within the time allowed legal action may be taken. This may result in a County Court Judgment (CCJ) being obtained against both borrowers.

  30. WILL YOU TAKE LEGAL ACTION?

    31. If payments are not made, further action could be taken resulting in a County Court Judgement (CCJ) against both borrowers.

  31. WHAT WILL HAPPEN IF A CCJ IS OBTAINED?

    32. A CCJ could lead to further legal action being taken. This could include:

    • an attachment of earnings order: An Attachment of Earnings Order (AEO) is where a creditor applies to the court for an order to allow them to take funds direct from the joint borrowers’ wages, if you fail to keep up repayments on a debt.
    • property charging order / inhibition order, which could lead to an order for sale: A charging order secures a debt you have with a creditor against your property. This means if you sell or re-mortgage your home before the debt is cleared the charging order will be paid off from the proceeds. A creditor can only get a charging order if they already have a County Court Judgment (CCJ) against you.

      • and

    • warrant of control: A Warrant of Control authorises Enforcement Agents (Bailiffs) to attend at the judgment debtor’s home or business address. They will collect money (or monies) owed under the judgment debt or remove goods from the home or business to sell at auction.
  32. WHERE CAN I GET ADVICE IF I AM HAVING FINANCIAL PROBLEMS?

    33. You can contact the following not-for-profit organisation for free, confidential and impartial debt advice.

  33. WHAT IS A CONTINUOUS PAYMENT AUTHORITY(CPA)?

    34. When you take out a joint loan with us repayments will be collected by Direct Debit. If the Direct Debit fails, we may collect the repayments by CPA. A CPA is a type of regular automatic payment linked to your bank account (allowing us to take payments of differing amounts on dates of our choosing), so that Match The Cash may attempt payment on your due date if payment is not made by Direct Debit.

  34. HOW WILL YOU USE THE CPA?

    35. If your payment is not received by direct debit, we will try to contact you to understand the reason for the failed payment. If we cannot contact you, we may exercise the rights under the CPA the day after the scheduled repayment date and if payment is unsuccessful at intervals of no less than three days until and including the next scheduled repayment. However, we will not do so if we believe you are experiencing financial difficulties.

  35. WILL YOU CONTACT MY EMPLOYER?

    36. As part of our commitment to responsible lending, we will ask you to provide us evidence of your income. If you are in employment, we will ask you for either; a copy of your latest payslip, a current work ID, a direct e-mail from you, a copy of your contract employment or the copy of your formal offer of employment. If any of these are not available, we will request from you a contact number to conduct a discreet verbal check of your employment.

    If you have entered the loan agreement with us, we may, at any time as may be reasonably required by us to confirm the fact of your employment only as per the permissions you have granted us.



Frequently Asked Questions V1.0 20.07.2021