Secured loan in joint names

Marketing-girl

Hi - some years ago my husband took out a FirstPlus loan which had to be secured on our house which is in both of our names. We now want to move house and would like the new mortgage to be in just my name as my husband is unlikely to be accepted by a mortgage lender. What will happen about the loan that is in joint names? I have been told that my husband needs to get a letter from a solicitor saying that he will still have joint share of the new house, even though it's in just my name. Does anyone know what we need to do?

amersall

If you are taking the loan with you, has FP said you can and can you get a Mortgage on your own to cover what you will need?, I am not too sure how this will work to be honest but I am sure someone who has more knowledge of this will come along and guide you.

As an aside, did you have PPI on the loan and if you did have you
reclaimed it?.

BrassicWoman

if you have joint loans, and his credit is shot, most likely yours is too. have you looked at your file?

Marketing-girl

I have already got a mortgage in principle from a lender and my credit score is 999 so I'm not worried about that.

jonesMUFCforever

Basically the First plus loan will need to be repaid before they release the charge on your property and let the sale go through.
If this is not possible they may let you port the loan to a new property in your name if you pass their affordability tests.

Having your husband though in the house will be a detterent to First plus doing this as it would be more difficult to evict you (and him) in the event of a default.
Don't bother wasting money on a solicitor's letter IMO it will not do any good.

PeacefulWaters

You won't be moving house without the secured loan being repaid from the sale proceeds.

Thrugelmir

The equity that you'll be using for the deposit on the new property is joint. That's one issue potentially.

You'll need to repay the secured loan as part of the sale process. If the new property is to stand any chance of being in your name alone.

DCFC79

Marketing-girl wrote: »

I have already got a mortgage in principle from a lender and my credit score is 999 so I'm not worried about that.

The 999 isn't of use where lenders are concerned.