What Is A Guarantor Mortgage? How Do Guarantor Mortgages Work?

[@cookiedough641]

Thank you for this info. Very helpful

[@robw2486]

dont do it

[@theoosully4707]

why?

[@robw2486]

​​​@@theoosully4707- is this a genuine question or a wind up? The problem is Guarantor loans have very high interest rates (almost 50 per cent) to begin with, and then all these hidden fees like an acceptance fee and then late fees on top every time a payment is late as well. All of these charges and interest are passed onto the Guarantor if the Debtor cannot or wont pay. It does not factor in a change of circumstances on either side such as job loss or an unexpected illness. The Guarantor remains liable until the full balance is paid off, even if the Guarantor dies, they then go after the estate. Imagine loaning a good friend or relative money by being their Guarantor, you fall out and are no longer friends, but you still need to pay.. it also allows fraudsters to not pay their bills. A 'Friend' of mine asked me to be her Guarantor, as she owed over 70k in debt via unnecessary overspending on multiple credit cards, and she had no assets, hence why she needed a donkey, I mean a Guarantor. She once loaned £70.00 off me, and it took her a year to repay me, and only after me constantly asking for it. I said NO, as i would have lost my house and gone broke. There was no benefit or reward for being a Guarantor, only stress, heartache and pain. The Government should outlaw the scheme, as only smart people make dummies responsible for their debt. Guarantors are needed as the bank considers the borrower such a high risk of non-payment (due to their bad history) they need a Guarantee upfront through collateral they can take so they don't suffer a loss. If the bank with all their due diligence won't loan somebody money without a Guarantor, why should you?