splitting the debt

Xbigman

halloweenqueen wrote:

I'd contact HSbc, perhaps they will be able to make an arrangment for you to get a personal laon to pay off your half and take your name off the original, its more likely that they will want that one closed. It may be worth your while seeing what loans are available to you for half the amount and seeing what you can do.

Lenders rarely do this but it is worth a shot if you both have good credit records.

As far as two loans to pay off half each; be very very carefull of this. If your OH spends the loan on something else you would still be liable for his half plus your own loan, whilst he has a shiny new loan to pay and ignores the old one.

This is always a tricky situation to sort out but the most workable solution (if lender won't split it) is for you to pay the loan company and OH pays you their half. Try to get OH to set up a standing order from their account to yours so they can't 'forget'.
Regards



X

halloweenqueen_2

I didn;t think they would just take her name off,just worth asking? the new loans should be set to go direct to the old one, like a balance transfer.

Emmzi

They can't just take her name off, or HE can claim he is being dumped with the debt unfairly.. not legal.

halloweenqueen_2

No I didn't mean just take her name off - but if she arranges a loan to pay off her half, it would be just his half left to pay and in his name?

skintasusual

i'm sorry to hear you're splitting....was it you asking about a mortgage the other day too?

me an my ex got a 10 grand loan each and payed off our joint 20 grand one. but we trusted each other to use the money to pay the original loan,and at the time we were both credit worthy!!

talk to the bank definitley.....sometimes they can be helpful!

Emmzi

halloweenqueen wrote:

No I didn't mean just take her name off - but if she arranges a loan to pay off her half, it would be just his half left to pay and in his name?

Joint loans have what they call a 'joint and several liability'. This means each party is responsible for all of it, not just their half. Banks legally cannot alter the names on a loan account unilaterally - everyone has to agree - and in this case it would weaken their position, so I can't see why they would agree. Also, OH HAS to re-apply for the new terms and conditions i.e. loan in his name alone. So if he won't play ball, there is nothing OP can do.

halloweenqueen_2

I wondered if that might be the case, so they have to raise the money sperately and make sure each other pays off their half to shut down the original loan?