Advice please

goolip

Hi,

I am looking to get a joint loan with my bf, we do not live together and he is not on the electoral roll at his home address. I have a feeling this may be a problem because of credit checks etc, I have a good credit rating but he has not had a loan or anything other than a contract mobile phone, he just pays up front for things and has never had to have a mortgage.

Any idea of the best way of finding out if we are likely to be accepted for a loan at reasonable rates from a normal lender without it adversely affecting my credit rating.

Many thanks for your help,

Lizzie

19lottie82

it doesn't sound like your BF will have much luck tbh. lenders look for people with good credit histories, and who are on an electoral role.

whats the loan for? do you understand the implications of a joint loan, if your BF and you split, and he decides not to pay "his half"?

dealer_wins

Lizzie, I have a feeling your BF is buttering you up for a joint loan is to stitch you up!

Let me guess, the funds are for his debts or his new car etc?

If he leaves you in the brown stuff, that joint loan will fall to you to repay in full as he will just walk away and as his credit record is already trashed the lender will expect you to pay the whole loan.

When you sign a joint loan agreement, you are in effect signing a loan agreement that is just in your name (Google joint and several liability).

Dont do it unless I have totally got the wrong end of the stick and you are happy to repay the loan by yourself should the worst happen!!

Foxy-Stoat_3

May as well take out the loan yourself so you won't be financially linked making your credit history trash also.

Better yet, dont do it and let him find his own debt.

TadleyBaggie

I'd think twice. You've already had an ex scarper leaving you debts. You were also thinking of becoming a guarantor for a friend's loan.

This previous thread speaks volumes: https://forums.moneysavingexpert.com/discussion/4924524=

SeanG79

I would avoid the joint loan, you will be financially linked thereafter and it may prevent you from obtaining future credit...

goolip

This is very true, I just dont like to see people close to me struggle. The payments would be coming out of his bank account, not mine but I will definitely think a bit more about it, rather than just helping as it is a huge commitment if it all went pearshaped and no, I would not be able to afford the payments myself. I will see if I can find something that he can do on his own, although this may be difficult for him, there must be some way.

Thank you for your advice.

Lizzie

Foxy-Stoat_3

TadleyBaggie wrote: »

I'd think twice. You've already had an ex scarper leaving you debts. You were also thinking of becoming a guarantor for a friend's loan.

This previous thread speaks volumes: https://forums.moneysavingexpert.com/discussion/4924524=

I think its the same friend....OP didn't get the answer they were looking for hence the second thread.

Advice is still the same though.

As in the other thread, if your insisting on helping your friend out then take a loan in your name only and give them the cash, assuming you can afford to replay it every month whether he pays you or not. If they pay it back to you in full then happy days...if not then at least his credit history isn't linked and effecting yours.

Good luck which way you go.

SeanG79

goolip wrote: »

This is very true, I just dont like to see people close to me struggle. The payments would be coming out of his bank account, not mine but I will definitely think a bit more about it, rather than just helping as it is a huge commitment if it all went pearshaped.

Thank you for your advice.

Lizzie

The problem is when he can't or won't make the payments...it will fall solely on your shoulders.

Sometimes we have to struggle in order to learn...

Foxy-Stoat_3

goolip wrote: »

This is very true, I just dont like to see people close to me struggle. The payments would be coming out of his bank account, not mine but I will definitely think a bit more about it, rather than just helping as it is a huge commitment if it all went pearshaped.

Thank you for your advice.

Lizzie

Doesn't matter who's bank account they are coming from at first, you will have to give the lender your bank details and if they miss a payment then they debt your account.

Its hard but everyone struggles, sometimes the best help is no help.

Pixie5740

Why can't the BF get a loan in his name?

I'd only consider getting a joint loan with someone if A) I was living with them as one household and the loan was to purchase something for both of us.