Unknown loan

Glass_Panda

My friend is in a mess. Her husband took out a business loan and made himself directors guarantor. He is now in the process of dissolving the company and so has to make the repayments himself, which he or my friend cannot do. They are considering re-mortgaging to pay off this debt. I don't feel this is fair, as my friend had no knowledge of the loan or the directors guarantor in the first place, but she is having to pay the price for it. Does she have any rights here? She is terrified the house will be repossessed as it is an asset of her husband, but it is also hers and she never agreed to risk it. Any advice would be great!

Nasqueron

Turning an unsecured debt into a secured debt is a mistake because yes, they could lose the house. He needs to speak to the debt owner and explain the situation, not make it worse

elsien

If it is a joint mortgage in both their names, she has the right to refuse to agree any additional secured borrowing. 

What you feel is fair or not isn’t really relevant. When you say “they” are considering remortgaging, Do you mean they are both genuinely considering it or her husband is pushing her to do it?

I would suggest to get some independent advice outside of her husband to really look at the implications for her of the business loan. Did she agree for it to be secured on the house initially, or is it an unsecured loan?