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Original poster

Loan

28 replies

cjloveske · 30/06/2019 10:18

My partner wants to apply for a loan in his name only but says he needs to add my details to the application as I live with him. The house is solely in his name. Why does the bank need to have my details?

OP posts:
SingingLily · 30/06/2019 10:22

If it's a personal loan, the bank doesn't need your details at all. It would only require this if it was a joint loan, and that isn't what your partner is saying. Ask to see the loan application form. It will make all things clear.

The kindest explanation is that your partner genuinely doesn't understand the form but only you and he would know if this is the right explanation.

TokyoSushi · 30/06/2019 10:24

Nope, his loan, his name only.

Your name, you'll have half the responsibility for it.

Wildorchidz · 30/06/2019 10:27

Your name, you'll have half the responsibility for it.

No. She will be ‘jointly and severally’ liable which means that if he defaults then the lender can come after her for the full amount.
Don’t do it OP.

procrastinatingtoday · 30/06/2019 10:28

You might want to check credit report what is against you - for example noddle as it's free.

TokyoSushi · 30/06/2019 10:57

I didn't know that @Wildorchidz - thank you!

Don't do it OP!

Original poster
cjloveske · 02/07/2019 09:05

Thanks for all the input. I did question him and he said that the bank wanted to know who lived with him and so he would have to give my details. I find this odd if the loan is just going to be in his name!

OP posts:
SingingLily · 02/07/2019 10:06

Is this a personal,loan or a secured loan?

Monday55 · 02/07/2019 10:49

Maybe he's wanting to put you down as a guarantor. Definitely ask to see the application form or call and ask the bank to see if they need you on the application.

NoSquirrels · 02/07/2019 10:51

Ask to see the forms. Check your credit report!

SingingLily · 02/07/2019 11:17

I'd assumed in my first post that it is a personal loan but if it is a secured loan, he would need your name and date of birth. However, rather than go into detail at this stage as to why, it would be helpful to know which it is.

jellybean85 · 02/07/2019 11:56

Actually I'm sure the two times I've done unsecured personal loans it's asked for details of people who live at my address. They weren't guarantors or co signing the loan. It doesn't go on there credit file as a loan application I was under the impression it was to check there was no red flags from other residents etc. So name of residents who are not dependants I think is normal. Anything more like Job or salary etc I would think it's more sinister.

Best to have a look at the paperwork if you have reason not to trust him.

Original poster
cjloveske · 06/07/2019 10:28

I'm not sure if it's a personal loan or a secured one. I will ask. It's for a new kitchen and I will be paying half in cash each month. Because of my previous marriage and making the mistake of allowing my husband to be an additional card holder, I've ended up with a massive amount of credit cards to pay off, as they are in my name, so I don't want to apply for a loan!

OP posts:
RandomMess · 06/07/2019 10:53

Do it's his house in his name but you are going to pay ££££££ for half a new kitchen when you have huge debts?

Why?

Original poster
cjloveske · 06/07/2019 11:26

He can't afford the loan on his own. I'm living with him and contributing to bills and buying majority of food etc. But I'm not paying rent as such. Financially there is no formal agreement. I am not sponging off him and do use most of my income being here. I've paid for lots of things in the house and garden etc.

OP posts:
RandomMess · 06/07/2019 11:31

So if you split up you've increased his property value and walk away with nothing and still have debts to repay...

Isleepinahedgefund · 06/07/2019 11:31

That'll be why - it's most likely either a joint loan or he wants you to be guarantor as he can't service the loan on his own.

Ask to see the form and you will soon find out - if he won't show you I think that's confirmation there is something amiss.

SingingLily · 06/07/2019 15:37

I'm living with him and contributing to bills and buying majority of food etc. But I'm not paying rent as such. Financially there is no formal agreement. I am not sponging off him and do use most of my income being here. I've paid for lots of things in the house and garden etc.

If it's a secured loan (rather than a personal loan), the house itself is the guarantee for the loan being repaid rather than your partner himself. The lender will place a charge (a legal right) on the property with the Land Registry. This means the house cannot be sold without the permission of the lender. It also means that if your partner defaults on the loan, the lender can force repossession and sale of the house in order to recover their money.

That's why the lender wants to know your name and age. By contributing to the bills and other household expenses, you have equitable interest or rights of estoppel in the property, even though your name is not on the deeds or on the mortgage. The lender wants to be sure that they can legally override your rights if your partner defaults.

You need to look at the application form, even if it is online, and you need to discuss this with your partner. It isn't your house but it is your home and you have acquired rights in it.

SingingLily · 06/07/2019 15:46

It's for a new kitchen and I will be paying half in cash each month.

I absolutely would not do this if I was in your shoes. If you ever split up, there would be no record of your contributions to the increasing value of the house.

NotStayingIn · 07/07/2019 08:19

I am not sponging off him and do use most of my income being here. I've paid for lots of things in the house and garden etc.

OP do be careful you are not paying more then you should. It doesn’t sound right that most of your income goes to living there!

You’ve been fucked over once financially I think you need to take a step back and see whether it isn’t happening again.

brownjumper · 07/07/2019 08:37

Why are you paying half on a kitchen you won't even OWN?!!!! Wake UP!

Original poster
cjloveske · 07/07/2019 09:04

Lots for me to digest here. Many thanks everyone. I'll ask to see everything and consider my options carefully. He said he was going to get a will sorted out this summer so that if he died, the house would go to me, not his 4 kids from a previous marriage. Xx

OP posts:
MeanMrMustardSeed · 07/07/2019 09:09

There is all sorts of complicatedness here - he would rather his girlfriend inherited his house than his own four children?
He’s rather take a loan out for a kitchen than save up the money and then do the work?
You have past debts from exH to pay off but are happy to contribute towards an asset you have no legal claim to?
I would wind it all back and start from the beginning as this sounds confused, complicated and unfair.

NoSquirrels · 07/07/2019 10:12

He said he was going to get a will sorted out this summer so that if he died, the house would go to me, not his 4 kids from a previous marriage.

I agree with MeanMeMustardSeed. Start again at the beginning.
My FIL spent all his money on “going halves” on major improvements to a property he’d never own. When he died, all his assets went by default to his step-family, his own children got nothing at all. I can’t tell you the bad feeling this all caused. Your situation is different but similar - please make sure you’re protecting yourself but also that your DP understands all the implications of what he’s suggesting. You can postpone a new kitchen - doesn’t sound as if either of you are in a financial situation to take on more debt.

chansondematin · 07/07/2019 11:17

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Message withdrawn at poster's request.

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