guarentor mortgage

burnyjess

We are guatentors for our daughters mortgage.We want to pay off a lump sum which will leave vher with a small mortgage.If she borrows more money are we still guarentors or do they have to ask our permission.

maninthestreet

Is she takes out a new mortgage, then you will not be guarantors for that.

kingstreet

Your guarantee will not end unless you pay off the whole mortgage. I would imagine an application for any increased borrowing would have to involve you, or the lender would find problems enforcing your guarantee for the extra money.

However, I can also imagine a situation where this would be deemed a borrow-back of overpayments, back up to the originally guaranteed amount. Some lenders might action this with little paperwork.

A chat with the lender concerned is the only way you're going to answer your query.