Guarantor on loan

Gecko10

Hi there, my homeowner guarantor is in the process of selling up and becoming a rentor, will this affect my current loan agreement?

DCFC79

Gecko10 wrote: »

Hi there, my homeowner guarantor is in the process of selling up and becoming a rentor, will this affect my current loan agreement?

What do the terms say with regard this ?

Gecko10

DCFC79 wrote: »

What do the terms say with regard this ?

Nothing regards this that I can see

forgotmyname

Is there any chance of the loan being secured by their home?

Either way they are still liable for your debts if you fail to keep up payments.

SeanG79

Ordinarily nothing changes, except the lender wont be able to get a charge against the guarantors property should both of you refuse to pay. All the rest remains the same

iolanthe07

Could there be a charge on the guarantor's house to prevent the property being sold until the debt is paid? Otherwise there would be a gaping loophole in the whole point of having a home owner guarantor.

SeanG79

There is a gaping hole. but guarantor loans are usually "smaller" (around £5k), so for the guarantor to sell their house and rent to escape having a CCJ placed against their property, its an awful lot of effort, not to mention cost to go through. The guarantor will also be ruining their good (else they wouldn't be approved as guarantor) credit history to facilitate this.

MEM62

Gecko10 wrote: »

Hi there, my homeowner guarantor is in the process of selling up and becoming a rentor, will this affect my current loan agreement?

Nope, they will still be lumbered with your debt if you don't pay.