Ex partner's unsecured loan on mortgage

staffyfee

Hi, am new to this so please bear with me if I have posted on the wrong place!

My work colleague split up with her partner about 2 years ago, and he left her in the house they jointly owned. She doesn't earn enough (£15000) to take the whole mortgage on herself as when they were together, her partner took out an unsecured loan of £15000 on the mortgage. She is now left in a position where she is unable to remove his name from the mortgage as she doesn't earn enough, but is also still paying off his loan.

At the moment he is giving her £100 month which is barely covering the interest, and is suggesting that he can't continue to pay this for ever as she now has a new partner who her ex says, can pay towards her house. Is there anyone out there who has any suggestions to get her out of this impossibly awful situation?

Thanks in advance for any help!

Dave_Ham

How can an unsecured loan be put on the mortgage, it was unsecured?

Can her new partner take over the mortgage and is their any equity in property..?

staffyfee

There isn't any equity unfortunately - if she sold now it wouldn't even pay off the mortgage which is part of the reason why she is so stuck. I'm not quite sure how it was set-up but am fairly sure it is unsecured.

money_maker_3

If it is unsecured and in his name then it has nothing to do with her and will not affect the house.
She needs to be sure if the loan was unsecured or secured, and if it is secured, she would have also signed for it

Thrugelmir

If its unsecured and not in her name then why is she paying the loan?

Personally I would stay in the property. Only fair the new partner pays rent. While continuing to pay the mortgage. As long as the property remains in negative equity little that can be done.

Take a long term view. No quick solutions.

star4876

Again as above really, is the loan a joint one and is it secured agaist the property? If the answers are no and no then she would be a fool to keep paying it. She's not obliged to at all.

Whats more, if she is now sharing the house with another partner [without jumping to conclusions] then surely she could ask for some help from him financially? What about renting a room out if there's a spare one?

Would the new partner be willing to apply with her to take over the mortgage from her ex?

crombie2012

If the loan is unsecured, she has nothing to worry about, especially if it's in her ex's name.

If it's secured, which means that the loan company will hold a 2nd charge on the property, then it will be in her name aswell to match the mrtg and if the payments default, the end result could be repossession. The only difference with the repo proceedings is that the mrtg company would get what are owed from repo the prop then the loan company will get their share. If there is a shortfall of the amount owed, your friend and her ex will be liable for this.