Money Moral Dilemma: Should we be guarantor for our relative?

Prothet_of_Doom

Money_learner wrote: »

Only be a guarantor for a fixed period and read the small print. I am currently guarantor for my ex wife who is engaged living with her partner for the last year but I'm still stuck with this. I cannot remortgage or move on with my life financially until this ends. So far she has paid her rent but in trouble if she doesn't!!

why not ? I don't know that any mortgage application asks if you are acting as a Guarantor. If it does I may have missed that when I took out a massive mortgage last year.

System

silvercar wrote: »

Yes but in certain circumstances you have obligations.

Students need guarantors. If parents are not prepared to act as a guarantor then why should anyone else? If the student can't find a guarantor they will have great difficulty in finding decent accommodation.

My parents refused point blank to be a guarantor for me whilst i was at uni, i still mananged to find places to rent, i just had to rely on private landlords and not agencies (which considering agency fees being as ridiculous as they are actually saved me some money).

That said they must have mellowed in their old age as they've agreed to do it for my brother who's at uni atm :mad:

Peter333

xXMessedUpXx wrote: »

My parents refused point blank to be a guarantor for me whilst i was at uni, i still mananged to find places to rent, i just had to rely on private landlords and not agencies (which considering agency fees being as ridiculous as they are actually saved me some money).

That said they must have mellowed in their old age as they've agreed to do it for my brother who's at uni atm :mad:

Maybe they didn't have much surplus income to cough up if you didn't pay your rent when you were at uni. But now it's many years after you went to uni, (I assume so as you said they have mellowed in their old age,) they have more surplus income, and are able to be a guarantor for your brother.

Re silvercar's comments; I disagree that it's a parents obligation to be guarantor for their adult child. If you don't have any surplus income (or very little,) then it would be foolhardy to agree to be guarantor, as you are just setting yourself up for a host of huge financial problems, possibly even financial ruin, should your adult child not cough up the rent.

Seems most people on this thread are sensible, as many have said they are not likely to ever likely to be a guarantor.

joehoover

Happyinflorida, this is not correct. The terms of your contract with original lender would have stated about transference to a third party, this would meant the original terms are upheld and you do indeed owe them that money - they are going to be far less likely to be helpful in listening to your case and helping wiht a payment plan, they will be slapping far more charges on.

If you ignore your debts the next step is a CCJ, these are not complicated or particulalry expensive, once this is issued you are not home free, you risk bankruptcy, and your credit score for sure is screwed.

Some lenders may write debts off but the stance you are advocating is ridiculous. Most people on MSE want to have control of their debts and pay them and come seeking advice before they get into an irreversible situation, your advice is very dangerous and risks people spiralling out of control, it's just not helpful to anyone's situation.

Herstory

I wouldn't, but then again I'd expect them to approach the university for a place in university own accomodation, or see if there is anyone in the area renting a room.

Esar01

I've seen other peoples friends evaporate when money gets into the equation, and why don't they ask their own parent/family.
The only way it would be workable, is if you were given the full rent up front for the entire contract, paying the rent as if its your property.
Maybe the landlord would accept 3 months rent as bond to give them time to re rent property, in the event of a problem.

Kazykazbar

I once did this for my son and Mrs on a washing machine it wasnt a lot of money (under £300 ) this was to help them build up their credit rating. though they paid odd times their payment didnt go on time or it was less than it should have been at the end of the term i began receiving so many demands for interest on late and under payment this was not good and i ended up paying around £70 because my son and Mrs kept saying they had paid and as i didnt want any blemish on my record
i would Never do it again and dont recommend anyone else to do it either no matter what the relationship

meknowalot-51

Being a guarantor for anyone however well you think you know them is very high risk and something i wouldn't be prepared to do.We've considered a buy to let property as somewhere to invest but the thought of all the potential downfalls has put us off,it's all too risky.I feel that todays younger generation arn't too bothered about debt and having to pay.Buy now pay later and if you can't don't worry as someone else will.

bargainbetty

Money_learner wrote: »

Only be a guarantor for a fixed period and read the small print. I am currently guarantor for my ex wife who is engaged living with her partner for the last year but I'm still stuck with this. I cannot remortgage or move on with my life financially until this ends. So far she has paid her rent but in trouble if she doesn't!!

Write to the lettings agent and the landlord, stating that you are now no longer in a relationship and are therefore financially disassociating from her. At the next lease renewal, you formal withdrawing from the guarantor status. State that at the end of the current lease period, you will consider the tenancy surrendered, and they will need to issue a new lease to her if they wish to retain her as a tenant, with no financial connection to you. Have a solicitor notarise the document and keep copies. It won't work if she stops paying before then, but I did send a notice to a landlord and they accepted the withdrawal at the end of the term.


I don't know if it is legally binding, but if they extend a lease against the specific written instructions of one of the parties sent well in advance of a break point in the lease, then there is a good chance a judge would not find in their favour should they ever try to take it to court.


Send a copy to your ex and advise her that she will need to make her own arrangements as a result.

angel549

As harsh as it sounds, i'd say no. It's a huge financial risk if anything goes wrong, and as much as you may trust them, you and your immediate family have to come first.

I dont have kids, but i'd expect that they (and my parents if it was ever needed) are the only people where I would even consider it for a second.

A relative who is adult enough to understand the risks will understand and not hold it against you.

Sounds bad, but you have to look out for yourself first in this world.