Loan secured against home

Tim55

My daughter jointly owns a mortgaged house, but she has split up with her partner and now lives in rented accommodation. Her ex-partner may seek to secure a business loan against their jointly owned house, where he still lives. Would the mortgage provider require acceptance from my daughter for the house to be security for her ex-partner's business loan? There is currently equity in the property albeit the current sole equity has been provided by me separately loaning them both the initial deposit money for the house.

milliemonster

Yes I believe if both their names are on the mortgage and deeds, then any creditor looking to provide a loan secured on the property would also require your daughters signature for this to be accepted, although, having said that, I am not sure if it would be possible for your daughters ex to have it secured on his share of the property only, you'd have to check this out

CHR15

There are many many posts on this forum form people who have discovered further credit being taken out secured on jointly owned property without both parties being aware.

I would tread very carefully, ensure you have signed up to the credit reference agencies and monitor closely and financial agreements appearing. That may mean subscribing to the £6 a month or so, but it may prove to be a worthwhile investment whilst the formal arrangements are made.

Is there any formal record of your investment into the property? if not, it may be another fight which will be difficult to wage.