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Removing someone as a guarantor from a loan

Hi, I am looking for some help please - my friend agreed to be a guarantor for a loan for her new boyfriend, however they have now gone their separate ways. Obviously the sensible thing would have been not to agree to this in the first place but love is blind ;) Is there any way at all that she can remove herself as guarantor? It is entirely possible that he will make his payments & there will be nothing to worry about however just in case, it would be good to remove the possibility that she will end up paying his loan for him. Any help gratefully received!
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Comments

  • cos_2
    cos_2 Posts: 624 Forumite
    Part of the Furniture Combo Breaker
    Signing as a guarantor means you are agreeing to be equally liable for paying back the loan. The loan company based its decision to lend on this fact, so I'm afraid your friend is stuck with it. Let's hope it works out ok.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    the only way is to pay the loan in full
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    The odds are 1-10 on that your friend gets screwed within 6 months!!
  • Apples2
    Apples2 Posts: 6,442 Forumite
    There is a good reason a guarantor was required, they are quite sure he will stop repaying.
    Your friend needs to buckle up, things could get bumpy..
  • zxspeccy
    zxspeccy Posts: 180 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Unfortunately there is little chance of this. The loan was ultimately agreed on the strength of the guarantor, and without them the loan would have been declined. The loan company would not wish to give up the right to pursue this person should the debtor not make the repayments.

    Be prepared for the worse.
  • bargainbetty
    bargainbetty Posts: 3,455 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    I would recommend that she try to keep in some measure of contact with him - she might need to track him down at some point.

    Good luck
    Some days, it's just not worth chewing through the leather straps....
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  • This happened relatively recently to a friend of mine, she split with her long term boyfriend (16 years together :( ), she was named as guarantor on a loan he took out when going back to uni.

    Thankfully their split was very amicable and he had no intention of trying to rip her off.

    She managed to get herself "removed" but it was only achieved by the bank granting him a fresh loan in his own right (he now has a good job) to pay off the existing one. It was all done in one visit to the bank but they both went and it was all mutually agreed.
  • zxspeccy
    zxspeccy Posts: 180 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    PhishFood wrote: »
    This happened relatively recently to a friend of mine, she split with her long term boyfriend (16 years together :( ), she was named as guarantor on a loan he took out when going back to uni.

    Thankfully their split was very amicable and he had no intention of trying to rip her off.

    She managed to get herself "removed" but it was only achieved by the bank granting him a fresh loan in his own right (he now has a good job) to pay off the existing one. It was all done in one visit to the bank but they both went and it was all mutually agreed.

    Yep this would work, repaying the original loan would remove the guarantor liabilities. It will depend on the ex-boyfriends credit rating as to whether he could get a loan in his own name now. Also would be be willing to do this as there may be early repayment penalties involved.
    However it nice to know of a bank being helpful in this situation.
  • KingElvis
    KingElvis Posts: 4,100 Forumite
    edited 29 May 2012 pm31 2:56PM
    I would tell your friend to batten down the hatches and prepare to get right royaly shafted.

    He's obviously a finacial shyster and the loan company knew he wasn't going to pay that little baby back.

    What did he waste it on?
    • A banger car
    • A holiday of Lurvvvveeee
    • Clothes, TVs and other worthless tat
    • Paying off other bills he'd run up
    • A boat
    • A moon buggy
    "We want the finest wines available to humanity, we want them here, and we want them now!"
  • vax2002
    vax2002 Posts: 7,187 Forumite
    The Legal position is that this is your friends loan !
    They gave the money to someone else, the someone else will also make the payments if they "can be bothered"
    If they stop as your friend is the one legally responsible for the repayment then your friend WILL be paying the loan.
    There is NO WAY OUT !

    Loan companies work like bookmakers, they work the odds and the odds showed that the person who wanted the loan will not pay it back and they are very very rarely wrong.
    If ever asked to be a guarantor it is a warning siren that you do not know the person asking you half as well as you think you do and the "paper trail" left behind them speaks far more truth than the person themselves.

    As said, advise your friend to buckle up, they may be rapids around the next bend and there is nowhere to get of the raft.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
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