Billie63 Posted July 25, 2008 Share Posted July 25, 2008 I may end up seeing a solicitor about this but wondered if anyone here may have gone through something similar. Boyfriend took out a 40k loan four months before we split. The debt is his, he took out protection insurance with it as well. He was quite upfront about this but asked me to be a signator because the flat we own is used as security agains the loan. The loan is for 12 years and I don't want my name attached to it. he is trying to get my name removed but I dont' see how he's going to do that when he has no money. Can anyone advise how easy this will be? Link to post Share on other sites
LakesideDream Posted July 26, 2008 Share Posted July 26, 2008 I may end up seeing a solicitor about this but wondered if anyone here may have gone through something similar. Boyfriend took out a 40k loan four months before we split. The debt is his, he took out protection insurance with it as well. He was quite upfront about this but asked me to be a signator because the flat we own is used as security agains the loan. The loan is for 12 years and I don't want my name attached to it. he is trying to get my name removed but I dont' see how he's going to do that when he has no money. Can anyone advise how easy this will be? It will probably be impossible unless the lender agree's to taking your name off the loan... and why would they do that? You agreed legally to be liable for that loan. That was the terms the lender set and you met them. Done deal. Go to all the lawyers or "solicitors" you like. It won't change the terms of the contract. Looks like you are stuck with him for 12 years LOL. Loaning money or borrowing money together with a boyfriend/girlfriend is the height of insanity. Either one of you can exit the relationship at any time. The loan agreement supersedes any agreements to pay you two may agree to. If you were married a judge could assign responsibility for repayment. As just "partners" you did that for yourself. No lender can be forced to change the payment terms of a legal contract. Link to post Share on other sites
Tony T Posted July 26, 2008 Share Posted July 26, 2008 I'm not a bible toter or a religious fanatic but I do know there are 17 bible verses in the Book of Proverbs that give stern warnings against guaranteeing or becoming surety on a loan for a friend...or stranger. Some good stuff in that book, Proverbs, no matter what religion you may be. Link to post Share on other sites
Author Billie63 Posted July 27, 2008 Author Share Posted July 27, 2008 Thanks for your replies. Is it worth us going to a solicitor with him agreeing to be solely responsible for repaying the loan? I know he would do that. I have no fear of him trying to trick me out of cash - despite everything he's an honest guy. Somehow I think I am stuck with this loser for the next 12 years. Link to post Share on other sites
Art_Critic Posted July 27, 2008 Share Posted July 27, 2008 Getting him to refinance the loan in his own name is your only chance of removing yourself. Something to note also... If you used your flat that you both own for collateral for the loan then you will not be able to sell the flat until the loan is satisfied or satisfied at the time of closing. Seem to me that you are stuck with him for 12 years unless you sell the flat and satisfy the loan with the proceeds.. Link to post Share on other sites
Author Billie63 Posted July 27, 2008 Author Share Posted July 27, 2008 Getting him to refinance the loan in his own name is your only chance of removing yourself. Something to note also... If you used your flat that you both own for collateral for the loan then you will not be able to sell the flat until the loan is satisfied or satisfied at the time of closing. Seem to me that you are stuck with him for 12 years unless you sell the flat and satisfy the loan with the proceeds.. I did not realise about selling the flat - oh God! The only thing I can hope for is to sell the flat in 2 years and use his share of the equity to pay off the loan. We are currently renting the place out. Thanks for that - I'm so mad at him and me for signing away 12 years of my life. Link to post Share on other sites
Enema Posted July 27, 2008 Share Posted July 27, 2008 Would it hurt your credit record if he screwed up some payments? Link to post Share on other sites
Mr. Lucky Posted July 28, 2008 Share Posted July 28, 2008 The only thing I can hope for is to sell the flat in 2 years and use his share of the equity to pay off the loan. Unfortunately, you both signed the loan with the real estate as collateral. Why would he, upon a sale, solely be responsible for paying the loan back if it was taken out while you were a couple? Most likely, the loan would be paid off before any proceeds were distributed... Mr. Lucky Link to post Share on other sites
Author Billie63 Posted July 29, 2008 Author Share Posted July 29, 2008 Would it hurt your credit record if he screwed up some payments? Yes it would. He's an honest guy and I'm not worrying about him failing to pay, plus he has insurance on the loan so that if he were to lose his job, say, the insurance would cover his loan payments. Mr Lucky, the loan is his, it's money to cover debts he had before he met me. We have always kept our finances separate - the loan is nothing to do with me - I haven't seen a penny of it, neither do I contribute to any of the repayments. Link to post Share on other sites
Mr. Lucky Posted July 31, 2008 Share Posted July 31, 2008 Mr Lucky, the loan is his, it's money to cover debts he had before he met me. I understand what the loan was for, but it's not his, it's both of yours. You co-signed it and your flat is securing the loan... Mr. Lucky Link to post Share on other sites
Author Billie63 Posted August 1, 2008 Author Share Posted August 1, 2008 I understand what the loan was for, but it's not his, it's both of yours. You co-signed it and your flat is securing the loan... Mr. Lucky Hi Mr Lucky, I understand that in the eyes of the law it is our loan. What I was trying to say is that between me and my ex, we have always regarded it as his loan - the money paid off debts on his credit cards. He is meeting with the lender next week in a bid to put the whole thing in his name but i don't hold out any hope and I have told him, a loan that size needs our flat as security. I am planning to see a solicitor to get him to agree that he will pay the loan off in 5 years rather than 12 years, using the annual work bonuses he receives as well as his share of equity in the property. Link to post Share on other sites
TrustInYourself Posted August 1, 2008 Share Posted August 1, 2008 Can I take out a 40k loan in your name too? I'm a real sweet guy. American. Ooo0-rah. Link to post Share on other sites
lovestruck818 Posted August 1, 2008 Share Posted August 1, 2008 OP- I hate to criticise and be a know-it-all but it probably wasn't a smart idea to do that...why in the world would you co-sign a loan for a boyfriend? A fiance, a husband, family is understandable...but relationships are uncertain as to if they will ever be a permanent thing. Link to post Share on other sites
TrustInYourself Posted August 1, 2008 Share Posted August 1, 2008 Hence why I asked for a co-sign on a 40k loan too. 15 seconds before I can post. Unfortunate. Link to post Share on other sites
Author Billie63 Posted August 4, 2008 Author Share Posted August 4, 2008 OP- I hate to criticise and be a know-it-all but it probably wasn't a smart idea to do that...why in the world would you co-sign a loan for a boyfriend? A fiance, a husband, family is understandable...but relationships are uncertain as to if they will ever be a permanent thing. We were engaged to be married. We lived together for nearly 6 years. We considered ourselves as secure as a married couple. I trusted him completely and he was in a tight spot. More fool me, sure. And despite the break up, despite the fact that he's with someone else - I trust him completely with money, I don't doubt he will pay the money back. My concern is that this loan may affect my credit record for the next 12 years. But I intend to have a solicitor draw up an agreement that he pay the loan off in 5 years instead of 12, using his annual work bonuses. Link to post Share on other sites
Author Billie63 Posted August 4, 2008 Author Share Posted August 4, 2008 Can I take out a 40k loan in your name too? I'm a real sweet guy. American. Ooo0-rah. I wouldn't trust you as far as I could throw you! Link to post Share on other sites
Mr. Lucky Posted August 4, 2008 Share Posted August 4, 2008 Hi Mr Lucky, I understand that in the eyes of the law it is our loan. What I was trying to say is that between me and my ex, we have always regarded it as his loan - the money paid off debts on his credit cards. He is meeting with the lender next week in a bid to put the whole thing in his name but i don't hold out any hope and I have told him, a loan that size needs our flat as security. I am planning to see a solicitor to get him to agree that he will pay the loan off in 5 years rather than 12 years, using the annual work bonuses he receives as well as his share of equity in the property. I guess I'm just skeptical that someone who won't honor the commitment of fidelity to his fiancee is now going to honor a financial commitment over the next 12 years. Regardless Billie, I hope it works out for you... Mr. Lucky Link to post Share on other sites
Author Billie63 Posted August 5, 2008 Author Share Posted August 5, 2008 I guess I'm just skeptical that someone who won't honor the commitment of fidelity to his fiancee is now going to honor a financial commitment over the next 12 years. Regardless Billie, I hope it works out for you... Mr. Lucky Thanks Mr Lucky. I'm sceptical as well. Which is why I'm taking steps to disentangle myself from this loan. Link to post Share on other sites
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