Changing parties on NRAM unsecured loan

B31

Hi

I had the dreaded Northern Rock Together mortgage and after selling thehouse in negative equity we were left with a £30,000 unsecured loan.

I am now recently divorced and my ex is very unreliable at paying his halfof the loan.

Both of our credit ratings are very poor as at the start of our split lastyear he did not pay the loan for around 9 months - which I was not aware of. Sothere is no/little hope of him getting a loan to pay his half off. My parentswill get a loan for me as I can afford the repayments - I just can't get itmyself because of him not paying the loan.

I do not want to be tied to my ex with this loan for the next 30 years -constantly worrying whether he will pay it. I want to start to improve mycredit rating again.

I have spoken with NRAM and asked if the loan could be put into my ex's solename - which he agreed to do if I gave him £15,000 cash (to pay half off with).

Even though we both agree - NRAM are saying no, they won't agree to a changeof parties because it is an unsecured loan and that is their policy andtherefore it cannot be changed.

I am not able to speak to anyone apart from call centre staff and am soupset and frustrated that this can happen.

Is there anything I can do? I would be so grateful for some advice!

Thanks

Tixy

Not surprising NRAM won't agree to it. You say yourself he is very unreliable at repaying the loan. They won't want him as their sole debtor. NRAM will want to keep both of you liable for the loan so they have 2 people to chase / take court action against in the event that you default.

e.g. If only ex was liable he might choose bankruptcy as an option and then the bank would get nothing back.

Is it really going to take you 30 years to pay off this debt between you? can you not both increase your repayments to get it paid off quicker?

If it is going to take 30 years then in a few years time when the debt and default have dropped off both your credit files then at that point maybe you could both look to take out individual loans for 50% of the then balance and repay it in full at that point, leaving you both with your own unconnected loans.

B31

Thanks Tixy.

I understand why NRAM are saying no, I just don't think it is fair on me. My ex husband cheated on me and is now shacked up with someone else - I want to be rid of him for good, but I can't becuase of this loan.

The term of the loan is 30 years, but it won't be that long if I have anything to do with it! I can get £15k to pay my half, but he can't - so what do I do?!!

Tixy

Joint loans often don't feel fair to people once there has been a breakdown in the relationship between the 2 borrowers. But that is the way it works with joint loans.

What is the date of the default on your credit files in relation to this loan?

Once it has dropped off your file (6years after the default) you may be able to file a notice of disassociation to your ex on your files.

If he keeps the rest of his credit file clean and is earning sufficiently at that point etc then maybe he'll be able to get a loan for the £13k or so then.

The only other possibility I could see for becoming financially disassociated from him before then would be if you could pay off the whole loan yourself (either by borrowing the full amount or by seeing if they will accept a reduced sum in full & final settlement of the whole debt) and then come to a written agreement with ex that he will continue to make repayments to you and will try to obtain a loan as soon as he is able. But realistically you would have to be prepared for him not paying you and it being difficulty to enforce the debt against him, particularly if he has no assets.