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Impact of husbands business loan on me

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Impact of husbands business loan on me

edited 30 November -1 at 12:00AM in Loans
4 replies 614 views
seoliver45seoliver45 Forumite
3 posts
edited 30 November -1 at 12:00AM in Loans
Hi,

I’m looking for some help by those in the know. My husband has just applied and been accepted for a business loan. This is for a big piece of equipment. He has submitted a business case and has some income from another side of the business which is unrelated to this and very small scale.

Separately to this, we are both employed by other organisations. He applied for he loan on behalf of the business not personally and I was assured the loan would only be tied to the business.

This morning an alert came up on his credit report to say a hard search had been done. I am concerned about the impact of this on his personal finance record but have read this can be the case. I have now been advised that for ‘‘money laundering’ purposes I need to provide my proof of address and ID. This business is nothing to do with me but my husband has been told it is because we have a joint mortgage although I have in writing it is an unsecured loan and there is no charge on the house.

I don’t want to provide any details, I don’t want anything on my credit file related to this particularly as we are due to remortgage shortly.

Can anyone advise me if this is standard practice for money laundering and what impact this will have on my own records? Currently I’m standing in the way of my husband’s hopes and dreams!

Replies

  • TrickyDicky101TrickyDicky101 Forumite
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    I have no particular knowledge of referencing for business loans.

    With that out the way, I would share your skepticism that you are required to submit ID details - you are not a party to the loan and doesn't sound like you are being asked to personally 'guarantee' it.

    I absolutely would sign nothing from these people.

    How much do you trust your husband?
  • BermoniaBermonia Forumite
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    It does seem strange.

    Would recommend asking hubby to review all the paperwork concerned with this to ensure it is as he has stated.

    It is possible that they are looking for some form of personal guarantee if they deem this high risk perhaps even a charge over your property if you are homeowners.
  • brisbris Forumite
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    You are financially linked through the mortgage. It will have an impact on you https://www.experian.co.uk/consumer/guides/financial-association.html
  • jonesMUFCforeverjonesMUFCforever Forumite
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    Bermonia has it spot on - the lender may require a guarantee from your husband. A guarantee is a worthless piece of paper unless secured on something - such as the marital home!
    What goes around - comes around
    give lots and you will always receive lots
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