Welcome to the forum wildpantheratrigris.

Only the lenders can agree to these requests to remove names from joint (or guaranteed) loan arrangements.

You may have some difficulty persuading them to do this as it will reduce the security that they have over repayment.

If you enter a trust deed your guarantor loan will be included, but they can still chase your ex for full repayment of this loan.

A trust deed will not remove your name from the mortgage, but it might, in some ways at least, shield you if things were to go wrong with the mortgage in the future.

Are you unable to maintain the repayments on your existing debts?

Thank you for your reply, I currently have two outstanding loans (one includes the loan with my ex as guarantor) and two overdrafts all with the same lender and due to the separation I had to set up again on my own and in doing so had to arrange a lower repayment arrangement on above through my lender. I'm not in default but this will take a very very long time to pay back what is owed.

Hi wildpantheratrigris,

As TDA as advised, it's only the mortgage company that can agree to remove you from the mortgage and normally they won't do this as it will mean that instead of having two people responsible for the payment of the mortgage they will only have one. It can be a big risk for the mortgage company.

A Trust Deed could be one of the options to help you deal with the debts in a more manageable timescale if that's what you are worried about. You could also consider other options such as a DAS or Sequestration. To be suitable for a Trust Deed you need to be able to make a monthly payment.

If you were to enter into a Trust Deed then you would be protected from the loan but the loan company who your ex is guarantor to will be fully liable for the debt and they will ask him to repay this. How would you feel about this if it happened?

The best thing to do is sit down with a qualified debt advisor, work out all of your debts, go through a very thorough income and expenditure and look at the assets you have. By doing this you will then be in a better position to choose a plan which suits your circumstances.

AS TDA has pointed out, entering into a plan can help protect you against any future problems with the mortgage should your ex decide not to pay the mortgage and the property is repossessed. If this did happen and there was a shortfall to the mortgage company after the house was sold then you would be protected from this debt.

How much do you think your unsecured debts total?

£28,000.00 It's the guarantor loan that bothers me, not sure how I feel about putting it on my Ex. Would need to seriously think about it.....the joint loan has £10,000.00 outstanding which is included in above figure.

Hi wildpantheratrigris,

It's obviously something which you will need think long and hard about. If you do enter into a Trust Deed or Sequestration then the guarantor loan would pass to your ex and the loan company would ask them to make the repayments.

Some people split on bad terms and therefore have no concern for the guarantor loan and others I suspect like you need to think long and hard about doing something which could have an impact on their ex-partner.

Depending on your ex-partners situation they could also consider a plan to help them deal with debts. This is something which you could discuss with them if you did decide to enter into a Trust Deed. They could have addition debts in the back ground which is often the case.

How long will it take for you to repay the loans that you have if you were to continue making the agreed payments?

At least 20 years at the amount that's agreed which is always reviewed every 6 months or if my situation changes for the better.

Are you making your agreed contractual payment per month to the loan or have you come to a reduced payment with the lender?

How much are you paying to the loans at the moment?

I'm paying reduced payments with the lender.
£100.00 per month on one loan (Joint loan)
£5.00 per month on the other
£10.00 per month on the overdrafts.

Hi.

Who's the other party on the joint loan?

Is this separate to the guarantor loan? Or is it the same one?

Sorry it's the same one that we have been discussing.

20 years isn't a realistic timescale for repaying your debts, so unless there is likely to be a major change for the better in your circumstances then I don't see that it is really an option.

If it is any consolation, the whole point of a Trust Deed is that you are paying back as much as you can but within a reasonable timescale, so a proportion of the debts will get repaid through it. Undeniably, it is likely that your ex will be left with the bulk of that loan to repay, but then that is what he agreed to do when he signed up.

It may be that you will be able to transfer your share of the property into your ex's sole name, as this is a different thing to taking your name off the mortgage. You would need to speak to a solicitor about that, or discuss the possibility with your chosen trustee if you are going into a Trust Deed. Maybe this could soften the blow to him of having to pay off that loan?

One of Kevin's points raises an interesting question.

Regarding your home that your ex lives in - is it worth more than the mortgage owed on it?

Owe £65,000.00 and going rate for selling is £65,000.00 possibly £68,000.00 so very little equity if any at all, if house did sell I would think it would just be enough to pay off Morgage company and possibly fees.

Hi wildpantheratigris,

Is £115 per month the maximum that you feel you can afford to pay towards the debts?

A Trust Deed requires the creditors to accept the proposal and as such there is a minimum criteria/minimum payment that a Trust Deed proposal needs to try and work towards. I'm not sure that a payment of £115 would be accepted by your creditors under a Trust Deed if your debts are around £28,000.

If after working through a very thorough income and expenditure all you can afford to pay per month is around £100 then you could also consider Sequestration (Bankruptcy). This isn't as bad as what people first think. The payment per month at the moment lasts for 36 months and the payment doesn't need to meet a minimum criteria.

As Kevin has said 20 years isn't really a realistic timescale to be trying to pay back unsecured debts and this is on the basis that the creditors continue to freeze any interest and charges.

Having to enter into a plan to deal with your debts such as a Trust Deed or Sequestration is never ideal but sometimes due to circumstances they can be the most suitable options available to help you deal with the debts in a realistic timescale and regain control of your financial situation.