Why Both Owners Must Usually Be Party to the Loan
A secured loan lender registers a second charge at the Land Registry against the property title. Because the title is held jointly, both registered owners must consent to that charge being placed on the property. Without the signature and agreement of all legal owners, the lender cannot obtain valid security and will not proceed with the loan.
This is not simply a procedural formality. Joint and several liability means that each borrower is individually responsible for the full debt, not just their share of it. If one borrower stops paying, the other is responsible for the entire repayment. Lenders require this because it gives them maximum recourse if the borrowing relationship breaks down — they do not have to pursue each owner separately for their respective portions.
The requirement for both owners to participate means that in practice, most secured loans on jointly owned properties are joint applications. Both applicants are credit checked, both incomes may be assessed, and both names appear on the loan documentation. From the lender's perspective this strengthens the application; from the borrowers' perspective it creates shared responsibility.
When One Owner Does Not Want to Borrow
If only one owner wants to take the secured loan — perhaps because they want the funds for personal purposes rather than a shared goal — the situation becomes more complicated. The non-borrowing owner cannot simply step aside; their consent to the charge over the property is legally required. In most cases, lenders will insist that the non-borrowing owner is either a co-applicant on the loan or signs a formal deed of consent.
A deed of consent acknowledges that the property is being charged as security and that the consenting owner understands the implications — including that if the loan defaults and the property is repossessed, they lose their home too. FCA guidance requires that lenders ensure non-borrowing owners receive independent legal advice before signing such a deed, so that they fully understand what they are agreeing to and are not pressured into the arrangement.
If one owner absolutely refuses to consent to any charge being placed on the property, the secured loan cannot proceed in its standard form. Options in that scenario are very limited: unsecured personal lending (typically at a higher rate and lower amount), or borrowing against a different asset if one exists. A solicitor can advise on whether any alternative security structure might be possible.
