Personal Guarantees

beancounter1968

Hi

My wifes son is just splitting from his girlfriend and he has taken some advice on the house they recently purchased together. In a nutshell the bank have said that he can continue with the mortgage on his own providing he has a personal guarantor.

I have been married 5 years and the house we live in is fully paid and solely owned by me.

Question is if my wife acted as a guarantor and any thing went wrong, could the mortgage company look to me if my wife wasn't able to make the payments?

Thanks

Thrugelmir

The guarantee has to have real substance behind it. Not merely a name. Property is an obvious form of surety.

antrobus

beancounter1968 wrote: »

...Question is if my wife acted as a guarantor and any thing went wrong, could the mortgage company look to me if my wife wasn't able to make the payments?
...

No.

Thrugelmir wrote: »

The guarantee has to have real substance behind it. Not merely a name. Property is an obvious form of surety.

True.

But maybe the OP ain't all that keen about standing as guarantor for his step son.

kingstreet

A guarantor is saying they will meet the mortgage payments for the remainder of the term.

The security remains the property over which the lender has a charge and nothing else.

The lender may seek the bankruptcy of a guarantor, but only if they have assets which may help defray any losses after the repossession and sale of the security property.