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Transfer Loan / Debt Help

Hi,

About 5 years ago my mum was going through a hard time and asked me to take a loan out for her and she would pay it back.

After taking the Loan out she couldn’t afford the repayments and we ended up falling out and not speaking for years.

Being young I didn’t know what to do and was told by a friend that if i did not pay the loan after time it would clear off my credit checks.

I am now looking to get a mortgage but am struggling due to the now defaulted account, I have spoken to my mother after all these years and she is happy to take over the loan. Is there any possible way to transfer the loan into her name, if not what would be the best approach to get this loan cleared and my credit rating improved?

The loan has been transferred to another company for collection and my default date is 12/10/2013.

I have received a letter saying I could be entitled to a discounted settlement, is this true or are they just trying to tie me down again?!

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    The loan cannot be transferred to her name.

    If you have been offered a discounted settlement, I would take it, if it's holding you back from mortgage applications.

    The default will fall off your files in October 2019.
  • John-K_3
    John-K_3 Posts: 681 Forumite
    Lenders are not keen to lend more money to those who have defaulted on previous debts. The facts are that you took out the loan, agreed to repay it, and defaulted, so no, you will not get it moved into someone else!!!8217;s name,

    The best approach to I prove your credit file would be to pay the loan off in full today.
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