Borrowing against partner’s property?

BikingBud

ALARM‼️

Just reading this sets me off!

london1973 said:

have googled extensively on this and there is very little on it but it must be ‘a thing’ surely? 

is it possible to use a partners property to guarantee a loan? We live together and the house is in her name, she is not interested in taking on additional debt herself (and lending it to me) so this would be the alternative- i.e some form of guarantor loan i guess, of course it ultimately boils down to the same thing if it all fails but its for debt consolidation for me (just a bit more needed than i can get unsecured) and actually will be cheaper for
me to service it this way, so relatively less risky - (we are married in all but name)

The guarantor loan options on line all look a bit ‘sub-prime’ and very expensive, as well offering low maximum amounts… 

 ALARM‼️

london1973

Thank you for all the sound advice from those who qualify, it is gratefully received, 

For the other responses how on earth can you make such assumptions? I asked a simple question and its been answered, i didn’t ask for wild theorising on my life situation.. but to be clear, my partner suggested we look into it, the total requirement is approx 2% of the value of the property which she owns outright, and she is desperate to help me… we were simply exploring possible options, and because i have heard the term ‘guarantor loan’ before (without knowing anything about it) it felt like something worth looking in to… 

Lesson learned here

[Deleted User]

london1973 said:

Thank you for all the sound advice from those who qualify, it is gratefully received, 

For the other responses how on earth can you make such assumptions? I asked a simple question and its been answered, i didn’t ask for wild theorising on my life situation.. but to be clear, my partner suggested we look into it, the total requirement is approx 2% of the value of the property which she owns outright, and she is desperate to help me… we were simply exploring possible options, and because i have heard the term ‘guarantor loan’ before (without knowing anything about it) it felt like something worth looking in to… 

Lesson learned here

Guarantor loans are usually very expensive as they assume a person who can't get a mainstream loan is likely to default (hence needing guarantor). 

Remember that with debt consolidation the lenders have to assume you will spend the money on other things and then you end up with 2x the debt - consolidation starts with the best intentions but then the car breaks down, the dog gets sick, you get a hot tip for the 3:30pm at Kempton etc etc. Or you pay off your debts but then run up more on the cards and you're back at square 1

phillw

london1973 said:

she is not interested in taking on additional debt herself (and lending it to me) so this would be the alternative- i.e some form of guarantor loan i guess, of course it ultimately boils down to the same thing if it all fails but its for debt consolidation for me (just a bit more needed than i can get unsecured) and actually will be cheaper for
me to service it this way, so relatively less risky - (we are married in all but name)

The guarantor loan options on line all look a bit ‘sub-prime’ and very expensive, as well offering low maximum amounts… 

If she is not interested in taking on additional debt herself, then why would she act as guarantor or let you borrow money against her asset? As in either case, she would be taking on additional debt herself.

My first impression is that you are trying to con her.

[Deleted User]

london1973 said:

well that’s taking things in a new direction 😂😂

Taking them in a very, real, direction though ..... as a few of us can vouch  😞

Herzlos

london1973 said:

Thank you for all the sound advice from those who qualify, it is gratefully received, 

For the other responses how on earth can you make such assumptions? I asked a simple question and its been answered, i didn’t ask for wild theorising on my life situation.. but to be clear, my partner suggested we look into it, the total requirement is approx 2% of the value of the property which she owns outright, and she is desperate to help me… we were simply exploring possible options, and because i have heard the term ‘guarantor loan’ before (without knowing anything about it) it felt like something worth looking in to… 

Lesson learned here

Guarantor loans are horribly expensive because they are only required for people who have bad form for paying it back.
In essence she'd be taking out a 50% APR loan herself and giving you the money, and the loan company would take it back from her the instant you stop paying.

The cheapest thing to do by far is for her to take the loan directly for a normal APR (like 5%) and pay off your debts.

Either way, she's on the hook for it, which she doesn't want to be.

I'd be looking at trying to get rid of the debt faster before consolidating, because it doesn't work (I know, I've consolidated myself from about £5k to £40k).

london1973

Thanks Herzlos, that’s pretty much exactly what i needed to understand, and thats what we’ll do

macman

'Married in all but name': so that means that your partner has none of the legal safeguards or rights enjoyed by those in a marriage or civil partnership. What used to be called 'common law' partnerships are legally worthless.

TripleH

Guarantor loans = sub prime loans to people with good credit ratings.

You qualify for a £5,000 loan at 6% interest, but we'll actually let you have it for 66% interest.

EssexHebridean

Hi OP - I appreciate that you think some of the responses here have been a bit out of line - but please understand that on these boards the regular posters really have seen it all - and that includes people who've been left in truly awful situations by taking on loans of this sort. Think about it this way - by doing this, (I appreciate you've now said that it's not for you, but this post may help someone else in a similar situation who hasn't yet reached that very sensible conclusion) what happens if in 18 months time you are - through no fault of your own - unable to  make the payments to this loan? The short answer is that if your partner is ALSO unable to afford the payments at that stage, then her home is at risk. And to be blunt, you would have put her in that position - even without meaning to. Most of us would agree - we wouldn't risk the roof over the heads of those we love the most. 

Sourcrates has already said it in essence - but you can't borrow your way out of debt. The only way of dealing with problematic debt is by dealing with it in a way which stops it being problematic, and then paying it off. That process (possibly, depending on circumstances, stopping paying in the first place, allowing defaults to happen which then stops the interest accruing, and then entering into a DMP which is paid off over X years) is also what educates us and informs us of how to avoid getting into another similar situation in the future. Consolidation bypasses that process, and means that nothing is put in place to avoid further debt accruing - because there is still access to credit, and because the root causes of the debt accruing often aren't dealt with.