guarantor loans

malkyh

mistersmurf wrote: »

Sorry if I came across as defensive, but all I did was explain my situation a little more, to see if people's advice stayed the same. If you've taken offence to that, I'd suggest the problem lies on your side.

I was just adding more detail. I genuinely wasn't typing in anger/frustration at you, just giving you some background info on the conversation we've had to see if your comment:

"If you miss a payment then your father would be stuck with the payments. Families can be destroyed by this. "

still stands.

If the only problem with a guarantor mortgage is families being torn apart, I think we've done enough ground work to ensure we all know what the score is, so that this wouldn't be a risk.

Sorry again, if you took offense with my post, but please accept I didn't intend any and clearly wasn't being particularly defensive, I was just surprised that your post came across like you thought that we might not both be totally aware of what happens if it goes wrong.

Offence is maybe a little strong as to how I took your post. You asked for an opinion on what people thought of guarantor loans. I gave my opinion, you responded with the first word of 'huh?', then went on to say how your father wasn't an idiot, how you had spoken about this in depth and how he knew what he was getting into. That, in my opinion is defensive.

Anyhow, that's not really important. If you have both had a good dicussion and he knows the risks, and it prepared to go ahead to allow you to have your flat then good luck to you.

Can I ask what age you are? Why do you need a guarantor anyway?

Oh, and on the part I have put in bold. Trust me, if you spend enough time on this board, you will soon see that many people become guarantor not having any idea what they are signing up to.

barbarawright

A guarenteed mortgage is surely somewhat different from a guarenteed loan - presumably the house can be sold if you default. Not quite the same with a loan for house repairs or to consolidate other debt.

DCFC79

mistersmurf wrote: »

and one last piece of info which may help explain his decision to agree. He was my guarantor on a student house I rented quite a few years ago, so has done it for me before.

The fact that I didn't miss payments then hasn't fooled him into believing it's not possible now. He is aware there's a chance and wants to do it still.

He can afford to take the mortgage in his name, if he wanted to, but he's not the youngest of chaps and wants me to get in a position so I can support myself when/if I come to apply for my next mortgage. He feels that he may not be here for ever, si I should prove I can repay a mortgage now, to improve my chances next time round

They're perfectly fine as long as A you keep up to date with the payments and B you both know whats involved which by the sounds of it your both aware of whats involved.

It all falls apart when the 2 involved haven't fully researched the ins and outs of these type of loans and when it goes pete tong the 2 then fall out and the guarantor is left paying the loan.

Janie4Now

mistersmurf wrote: »

Sorry if I came across as defensive, but all I did was explain my situation a little more, to see if people's advice stayed the same. If you've taken offence to that, I'd suggest the problem lies on your side.

I was just adding more detail. I genuinely wasn't typing in anger/frustration at you, just giving you some background info on the conversation we've had to see if your comment:

"If you miss a payment then your father would be stuck with the payments. Families can be destroyed by this. "

still stands.

If the only problem with a guarantor mortgage is families being torn apart, I think we've done enough ground work to ensure we all know what the score is, so that this wouldn't be a risk.

Sorry again, if you took offense with my post, but please accept I didn't intend any and clearly wasn't being particularly defensive, I was just surprised that your post came across like you thought that we might not both be totally aware of what happens if it goes wrong.

Sounds like you guys have it sorted. Sadly, most people do NOT know what they might be letting themselves in for and I have seen what can happen. Personally, I couldn't imagine asking my Dad to guarantee a loan - he'd be in my face month in and month out making sure I'd made the payments.....!

amyloofoo

I agree that guarantor mortgages are a bit different than loans, as there is an asset which could be sold in the event of default, and there is generally legal advice involved so all parties should be aware of their obligations. I don't think it's fair to draw too many comparisons between a guarantor mortgage with a reputable bank and a guarantor loan with the likes of amigo.

mistersmurf

I don't get how someone can end up guaranteeing finance without knowing what they're doing. Surely no company would let someone stand guarantor without speaking to them?

My Dad was guarantor for my student flat, it would be completely impossible for him to have done it without knowing he'd have to pay my rent if I didn't.

malkyh

mistersmurf wrote: »

I don't get how someone can end up guaranteeing finance without knowing what they're doing. Surely no company would let someone stand guarantor without speaking to them?

My Dad was guarantor for my student flat, it would be completely impossible for him to have done it without knowing he'd have to pay my rent if I didn't.

Trust me, it happens.

mistersmurf

malkyh wrote: »

Oh, and on the part I have put in bold. Trust me, if you spend enough time on this board, you will soon see that many people become guarantor not having any idea what they are signing up to.

How though?

I genuinely don't understand how anyone that is agreeing to be a guarantor doesn't know that they have to repay if the person they're guarantor for doesn't?

Do these companies not speak to them first? If that's the case, I can kind of understand it

malkyh

mistersmurf wrote: »

How though?

I genuinely don't understand how anyone that is agreeing to be a guarantor doesn't know that they have to repay if the person they're guarantor for doesn't?

Do these companies not speak to them first? If that's the case, I can kind of understand it

I can't answer that question I'm afraid. I am unable to understand it either but it happens and there are the posts on here to prove it.

It may be they just don't consider that the person they are signing up for would ever not pay. The realisation kicks in of what they have done when the other party defaults and the money starts coming out of the guarantor's pocket.

See here. https://forums.moneysavingexpert.com/discussion/4149645

Chrisblue1962

Guarantor Loans

Rearrange the words below into a well-known phrase...

Barge Touch Pole A Don't With !

...in case you're not sure...Don't Touch With A Barge Pole !

The only thing "guaranteed" about Guarantor Loans is that companies like FLM Quick are guaranteed to make a fortune whilst the person who "guarantees" the loan is the one likely to pay it.

My OH acted as guarantor for a now ex-friend who lied to us and FLM quick about being employed when she appiled for the loan (she wasn't) and was waiting for her first month's salary.

We had no legal comeback WHATSOEVER and ended up paying about £800.00 in total to FLM Quick.

A quick recap - Don't Touch With A Barge Pole !...Ever.

If you're still keen to get a guarantor loan then I suggest you are not in control of your own marbles and should seek professional mental health advice. :rotfl: