Yes, but you will need the other person’s consent.
A home equity loan allows you to borrow against the equity in your property. For example, if you have a property worth £125,000 and a mortgage of £75,000 you have £50,000 of equity in your home.
A home equity loan means that the lender takes a legal charge over your home when they agree to the loan. This means that they can repossess your property if you fail to keep up your loan repayments.
If you own your property with your spouse, partner, friend or family member then any home equity loan application will have to be in joint names. Even if you only want to borrow against your ‘half’ of the equity in the property, both of you will have to complete the application form and both of you will be responsible for both the monthly repayments and the loan balance.
If you own your property jointly with another party then both signatures will be required and the lender may access the credit files of both parties. You will also both have to sign any legal documents relating to the home equity loan.
There are a number of advantages to making a joint application. The main advantage is that the lender will take both incomes into account when underwriting your application. When deciding whether the loan is affordable they will have two incomes to take into account, making it more likely that your home equity loan will be agreed upon.
As far as a lender is concerned they do not split the equity in a property equally between both parties. On a joint mortgage or home equity loan, both parties are responsible for the total amount of the borrowing. This means that you will require the joint owner of your home to co-sign any paperwork relating to a secured loan application.
To access the money tied in your home equity and get a great loan rate, book an appointment with the Mortgage Genie.