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divorced; sold the house but stuck with a "secured" joint loan

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  • divorced; sold the house but stuck with a "secured" joint loan

    hello everyone,

    Thank you for reading my post, I wasn't sure how to title it so I hope it was appropriate.

    My ex husband and I divorced in 2012, we sold our house in October 2014. When we took out the mortgage in 2007 we also took out a secured loan which would pay off some of our consolidated debts (a car loans and small credit cards etc) and also pay legal fees towards the property purchase, I believe some of it went towards some sort of deposit towards the house - back in the days of a 110% mortgage!

    The mortgage and loan were originally taken out with Alliance and Leicester but is now handled by Santander. Originally I had asked him to take my name off the house and loan since he was living there with new partner and child and I had moved on. Santander wouldn't do this until the standalone loan was paid off. He eventually moved out of the house and put it on the market and it has sold. The mortgage was cleared but the £12k loan remains outstanding.

    I want us to pay off 50% each and close the loan, even though he is paying for it and is happy to remain doing so on its current arrangement I am worried that if he would default for any reason then I would be liable for this debt. Following discussions he agreed to take out a personal loan for the 6k and so did I, over the past few months he has decided that he doesn't want to get a loan, or he specifically wants Santander to give him one. its taking ages meanwhile I have taken out the 6k loan, for which I am paying interest and repayments and its just sat in my savings account. I do not want to pay it off the loan without him having the same money to close it down as I would still be liable for the remaining balance.

    He is seriously dragging his heels and has gone back on his word and allowed me to saddle myself with this new debt for nothing. is there anything I can do to get the loan split, can I force him in anyway to just pay off his half?

    the loan is no longer secured as neither of us owns the property, they were originally willing to take my name off the mortgage if the £12 loan was paid off but are unwilling to take my name off a 12k loan (soon to be 6k) with the 95k mortgage paid off?

    Can anyone offer me any advice please I just want to be financially clear of him and move on with my life, managing and being responsible for my own debt and my own credit rating.

    Any advice or insight into this type of situation would be very gratefully received,

    Thank you,

    Frustrated

  • #2
    Re: divorced; sold the house but stuck with a "secured" joint loan

    Originally posted by frustrated one View Post
    hello everyone,

    Thank you for reading my post, I wasn't sure how to title it so I hope it was appropriate.

    My ex husband and I divorced in 2012, we sold our house in October 2014. When we took out the mortgage in 2007 we also took out a secured loan which would pay off some of our consolidated debts (a car loans and small credit cards etc) and also pay legal fees towards the property purchase, I believe some of it went towards some sort of deposit towards the house - back in the days of a 110% mortgage!

    The mortgage and loan were originally taken out with Alliance and Leicester but is now handled by Santander. Originally I had asked him to take my name off the house and loan since he was living there with new partner and child and I had moved on. Santander wouldn't do this until the standalone loan was paid off. He eventually moved out of the house and put it on the market and it has sold. The mortgage was cleared but the £12k loan remains outstanding.

    I want us to pay off 50% each and close the loan, even though he is paying for it and is happy to remain doing so on its current arrangement I am worried that if he would default for any reason then I would be liable for this debt. Following discussions he agreed to take out a personal loan for the 6k and so did I, over the past few months he has decided that he doesn't want to get a loan, or he specifically wants Santander to give him one. its taking ages meanwhile I have taken out the 6k loan, for which I am paying interest and repayments and its just sat in my savings account. I do not want to pay it off the loan without him having the same money to close it down as I would still be liable for the remaining balance.

    He is seriously dragging his heels and has gone back on his word and allowed me to saddle myself with this new debt for nothing. is there anything I can do to get the loan split, can I force him in anyway to just pay off his half?

    the loan is no longer secured as neither of us owns the property, they were originally willing to take my name off the mortgage if the £12 loan was paid off but are unwilling to take my name off a 12k loan (soon to be 6k) with the 95k mortgage paid off?

    Can anyone offer me any advice please I just want to be financially clear of him and move on with my life, managing and being responsible for my own debt and my own credit rating.

    Any advice or insight into this type of situation would be very gratefully received,

    Thank you,

    Frustrated
    :tinysmile_aha_t:

    Generally most Finance companies, Banks, Building Societies, Secured Loan providers take a ""blunderbus"" approach to loan agreements. The more people who are or could be liable, the better.

    Who can blame them? they just want their money back !!

    Comment


    • #3
      Re: divorced; sold the house but stuck with a "secured" joint loan

      If a loan is in both parties names the debtors are jointly and severally liable not just for 50% but the whole amount outstanding the creditor can pursue both parties if payments fail.

      nem

      Comment

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