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Joint vs Individual Loans

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  • 27-09-2012 5:08pm
    #1
    deejer
    Registered Users Posts: 712 ✭✭✭


    Hi there,

    I am applying to the credit union for an additional amount on a joint loan I hold with my partner. I also have a personal loan with them and the joint amount of these two loans as they stand is over Eur40,000.

    They are refusing to grant the additional amount without providing security because of this, however I feel that the joint loan should be considered seperate from my personal borrowings because myself and my partner are a legal entity in our own right.

    Am I talking rubbish here!?!?:o


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    #2
    badgerbroc11
    Registered Users Posts: 141 ✭✭badgerbroc11


    deejer wrote: »

    They are refusing to grant the additional amount without providing security because of this, however I feel that the joint loan should be considered seperate from my personal borrowings because myself and my partner are a legal entity in our own right.

    Am I talking rubbish here!?!?:o

    It can't be considered separate. Both loans will be paid from the one source of income, i.e. you and your partners combined income. If one of you we're to lose you job the both loans would become stressed. The regulator looks very closely and connected party loans.

    There is new legislation being drafted at the moment to create a new Credit Register which will replace the ICB. This legislation will make it obligatory for all lenders to identify connected loans. The regulator currently requires CU's to this any way.


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    #3
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Of course it's not separate as both loans will be contributed to from your income. You are not a separate entity with your partner. You are a joint entity with other debts. You can't seriously expect a bank to disregard your personal borrowings when seeking a joint loan. That would be wreckless.


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    #4
    deejer
    Registered Users Posts: 712 ✭✭✭deejer


    Im probably not explaining myself very well here.

    What they are saying is that this extra amount (eur5000 taken as part of the joint loan) is taking my personal borrowings over Eur40,000 which is their limit for borrowings without security. The reason is I have another student loan account in my own name which is being put in together with the Eur40,000 above.

    If it is being included should it not be a limit of Eur80,000 since a large some of it is joint borrowings. Its just another bit of red tape i guess.

    And I am not saying anything against the credit unions as from what I can see they are the only decent credit facility in the country.


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    deejer wrote: »
    Im probably not explaining myself very well here.

    What they are saying is that this extra amount (eur5000 taken as part of the joint loan) is taking my personal borrowings over Eur40,000 which is their limit for borrowings without security. The reason is I have another student loan account in my own name which is being put in together with the Eur40,000 above.

    If it is being included should it not be a limit of Eur80,000 since a large some of it is joint borrowings. Its just another bit of red tape i guess.

    And I am not saying anything against the credit unions as from what I can see they are the only decent credit facility in the country.

    No simply. Their rules for security are 40k for a person. If I you have a 40k joint debt you both jointly and severally owe 40k, rather than you both owing them 20k separately.


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