Splitting a joint loan

Dovely

My husband and I have been seperated a year now but still have a joint loan with Nat West as well as a joint bank account. We have asked them to remove his name from the account as it is now solely for my use but have refused to do so. Fortunately the split is friendly so any mail he gets he gives to me but the more serious issue is the loan. We have asked them to split it so that we each take an equal portion to make out financial position better when we file for divorce next year but have also refused to do that!!
Unfortunately I am on a fairly low salary and don't have the best credit rating so am worried that if I try to apply externally it will make my credit rating worse!!
Any help or advice would be gratefully received :-)

lemonjelly

I'm afraid that it can only be split with the lenders consent, at their discretion.
With a joint loan, the lender has the option to take enforcement action for recovery of the loan against both of you, for the full amount. It isn't the case that each of you are liable for half.

The lender is unlikely to consent to removing his name, as it reduces their enforcement options if the loan is in arrears.

Sorry I couldn't give you better news...

Dovely

I have been told that once we get to the divorce stage the courts can force them to seperate the debt but we really don't want to wait that long :-(
Oh well, back to the drawing board!

paultither

On this subject. Is it possible to sign a joint loan over to a single person (who would then take on full responsibility of it) at a later date?

CLAPTON

Dovely wrote: »

My husband and I have been seperated a year now but still have a joint loan with Nat West as well as a joint bank account. We have asked them to remove his name from the account as it is now solely for my use but have refused to do so. Fortunately the split is friendly so any mail he gets he gives to me but the more serious issue is the loan. We have asked them to split it so that we each take an equal portion to make out financial position better when we file for divorce next year but have also refused to do that!!
Unfortunately I am on a fairly low salary and don't have the best credit rating so am worried that if I try to apply externally it will make my credit rating worse!!
Any help or advice would be gratefully received :-)

Although it makes sense to try to separate financially asap, I don't reallly see why splitting the debt makes your financial position any better.


also I can't see why you dont a least apply for a new loan (assuming he does too of course) .. an application or two wouldn't do you any harm


how much is the loan?
how much do you earn?
what other debt do you have?

lemonjelly

Dovely wrote: »

I have been told that once we get to the divorce stage the courts can force them to seperate the debt but we really don't want to wait that long :-(
Oh well, back to the drawing board!

Not as far as I'm aware, though I'm not a divorce solicitor I'm afraid.

paultither wrote: »

On this subject. Is it possible to sign a joint loan over to a single person (who would then take on full responsibility of it) at a later date?

I don't believe so. Debts are non-transferable. However an individual could take out an alternative loan which would clear the balance, but having the new loan in their sole name means they're the only liable party.

up2myeyeballs

hi all, im completly distraught right now reading all of this.
without wanting to sound like an utter drama queen, but at the age of 23 i was very foolishly persuaded into getting a nothern rock mortgage and an unsecured loan, as a together product (first time buyers). with my partner.
anyway the secured loan was for 140k and the unsecured loan was for 30k. (170k in total)
my partner has a terrible debt history, IVA bad bad credit etc... i didnt even know what an iva was back then, ive always been so careful and ive never had debt. i dont think at this point i my life i'd even been overdrawn.. three years down the line we split up (feb 2009) , and i remortgaged the property (the 140k secured element) into my sole name, throwing in 15k of my only savings to do so.....so i now have absolutly no money what-so-ever......
the problem now, is that the secured loan of 30k still remains, and is over the original term of our northern rock mortgage...30 years!!!,
its costing a fortune and looks endless.
of the 30k, we have decided to split it 50/50 on the basis that 15k was our original 10% deposit and being that the property is now mine, morally i should take responsibility, so i am and will. the other 15k was purely for my partner to consolidate her previous debts....i didnt see a penny of that 15k, and bank statements will prove that.
problem is now, i recently spent a few grand on a credit card taking my family on a christmas holiday, as my mam was recently diagnosed with cancer (she has the all clear now!!!! some good news at least) but my credit card charges are terrible so i started applying for a new card to do a balence transfer and save money, as advised on here.... problem is my credit rating isnt very good so i did an experien check and it said that its because of the fact i owe a lot of money, a large sum 30k people wouldnt be so keen to lend me anything. even though the joint loan is in both of our names, i still have a 30k sum attatched to me in the section when the credit report describes what you owe...

ive tried talking to my partner regarding this, but she always says the same thing...dont want to apply because it will lower my credit rating and ill get refused anyway.... it seems helpless.
she admits that she doesnt want to be paying this thing off for the next thirty years and that she will apply for a loan of 15k to pay her half, and i can do the same...but she seems to be really not that enthused to do so...she seems quite happy to toddle along paying it, meanwhile ive got 30 grands worth of debt next to my name.... im heartbroken and i cant believe what a silly naieve person i have been.
despite trying to talk to my partner to at least go to the bank together (hers hsbc, mine lloydstsb) just to see what they say/reccomend, she just says its pointless...
i think the main reason she is dragging her heels is that she already has another 8k to her name (not including her 15k share), which she accumulated behind my back during our relationship...this as far as i believe is in the form of 2 credit cards and 2 loans possibly 3...i dont like to snoop and she is very sneaky...hides things.
do you think in this current financial climate anybody would actually lend her 15k bearing in mind that she already owes about 8k, because obviously there is no point in me borrowing my 15k to pay off if im still going to be liable for 'her' share?
what should i do, really can someone offer any help?
worryingly it has occured to me that if at any point she doesnt pay her half of the loan, say for example she decides not to/cant afford it, that and the fact she knows deep down i would never not pay it, will my property be at risk? if she stopped paying the loan, and i stopped what could they do, could they take my property away from me, along with all my savings in the world...? i dont think i could handle that, but i know i cant afford to pay the whole loan amount each month, its like £321 a month, for 30 years..
my partner refused tonight to discuss it, im sat here on the sofa, i cant stop crying and feeling a bit sorry for myself, i feel like a mug, ive done nothing wrong except for being really naieve, to make this worse my partner and i had only been together 4 motnhs when we got our mortgage..
please someone help me, i dont want to involve my parents after my mums recent ill health, it would tear them apart to know of this dire situation im in.
isnt there anything to get northern rock to seperate the loan?
what will the consequences be if it turned nasty and neither of us paid the loan, could they really take away my property?
if i didnt own the property and say for example, i sold it and then transferred any profits i made into my sisters bank, if my partner and i didnt pay the loan, if northern rock came after us what could they do...in time doesnt things like this just get lost in the system and eventaully forgotten about...a friend of mine and her ex husband owed 25k and neither paid up, about 10 years down the line its been forgotten she says, and nobody has even come looking for her for the money, shes since got herself a new mortgage? could this be an option for me, to bide my time, i know my credit score would be terrible, but right now, i could care less, my heads so confused... thought saying that, because i was medically discharge from the armed forces, i receive a tax free military pension each month, so is it possible that the people i owe money to would be able to take money from my pension?
i cant help think that whichever direction i look at this, im utterly screwed
any help would be so thankfully appreciated.
x

Sillybilly30

up2myeyeballs wrote: »

hi all, im completly distraught right now reading all of this.
without wanting to sound like an utter drama queen, but at the age of 23 i was very foolishly persuaded into getting a nothern rock mortgage and an unsecured loan, as a together product (first time buyers). with my partner.
anyway the secured loan was for 140k and the unsecured loan was for 30k. (170k in total)
my partner has a terrible debt history, IVA bad bad credit etc... i didnt even know what an iva was back then, ive always been so careful and ive never had debt. i dont think at this point i my life i'd even been overdrawn.. three years down the line we split up (feb 2009) , and i remortgaged the property (the 140k secured element) into my sole name, throwing in 15k of my only savings to do so.....so i now have absolutly no money what-so-ever......
the problem now, is that the secured loan of 30k still remains, and is over the original term of our northern rock mortgage...30 years!!!,
its costing a fortune and looks endless.
of the 30k, we have decided to split it 50/50 on the basis that 15k was our original 10% deposit and being that the property is now mine, morally i should take responsibility, so i am and will. the other 15k was purely for my partner to consolidate her previous debts....i didnt see a penny of that 15k, and bank statements will prove that.
problem is now, i recently spent a few grand on a credit card taking my family on a christmas holiday, as my mam was recently diagnosed with cancer (she has the all clear now!!!! some good news at least) but my credit card charges are terrible so i started applying for a new card to do a balence transfer and save money, as advised on here.... problem is my credit rating isnt very good so i did an experien check and it said that its because of the fact i owe a lot of money, a large sum 30k people wouldnt be so keen to lend me anything. even though the joint loan is in both of our names, i still have a 30k sum attatched to me in the section when the credit report describes what you owe...

ive tried talking to my partner regarding this, but she always says the same thing...dont want to apply because it will lower my credit rating and ill get refused anyway.... it seems helpless.
she admits that she doesnt want to be paying this thing off for the next thirty years and that she will apply for a loan of 15k to pay her half, and i can do the same...but she seems to be really not that enthused to do so...she seems quite happy to toddle along paying it, meanwhile ive got 30 grands worth of debt next to my name.... im heartbroken and i cant believe what a silly naieve person i have been.
despite trying to talk to my partner to at least go to the bank together (hers hsbc, mine lloydstsb) just to see what they say/reccomend, she just says its pointless...
i think the main reason she is dragging her heels is that she already has another 8k to her name (not including her 15k share), which she accumulated behind my back during our relationship...this as far as i believe is in the form of 2 credit cards and 2 loans possibly 3...i dont like to snoop and she is very sneaky...hides things.
do you think in this current financial climate anybody would actually lend her 15k bearing in mind that she already owes about 8k, because obviously there is no point in me borrowing my 15k to pay off if im still going to be liable for 'her' share?
what should i do, really can someone offer any help?
worryingly it has occured to me that if at any point she doesnt pay her half of the loan, say for example she decides not to/cant afford it, that and the fact she knows deep down i would never not pay it, will my property be at risk? if she stopped paying the loan, and i stopped what could they do, could they take my property away from me, along with all my savings in the world...? i dont think i could handle that, but i know i cant afford to pay the whole loan amount each month, its like £321 a month, for 30 years..
my partner refused tonight to discuss it, im sat here on the sofa, i cant stop crying and feeling a bit sorry for myself, i feel like a mug, ive done nothing wrong except for being really naieve, to make this worse my partner and i had only been together 4 motnhs when we got our mortgage..
please someone help me, i dont want to involve my parents after my mums recent ill health, it would tear them apart to know of this dire situation im in.
isnt there anything to get northern rock to seperate the loan?
what will the consequences be if it turned nasty and neither of us paid the loan, could they really take away my property?
if i didnt own the property and say for example, i sold it and then transferred any profits i made into my sisters bank, if my partner and i didnt pay the loan, if northern rock came after us what could they do...in time doesnt things like this just get lost in the system and eventaully forgotten about...a friend of mine and her ex husband owed 25k and neither paid up, about 10 years down the line its been forgotten she says, and nobody has even come looking for her for the money, shes since got herself a new mortgage? could this be an option for me, to bide my time, i know my credit score would be terrible, but right now, i could care less, my heads so confused... thought saying that, because i was medically discharge from the armed forces, i receive a tax free military pension each month, so is it possible that the people i owe money to would be able to take money from my pension?
i cant help think that whichever direction i look at this, im utterly screwed
any help would be so thankfully appreciated.
x

Hello. Did anyone give you advice on this? I too am in the same situation and totally understand how your feeling! I've considered jumping off a bridge, which is very silly of me to even think about doing that! How did you get on? Any joy? xx

Sillybilly30

Hello. Did anyone give you advice on this? I too am in the same situation and totally understand how your feeling! I've considered jumping off a bridge, which is very silly of me to even think about doing that! How did you get on? Any joy? xx

somethingcorporate

They only posted once and it was 18 months ago, I very much doubt they will be back

Sillybilly30

Shame. It would have been nice to find out how they got on! Never mind.