# Mortgage Guarantor



## Moneyman (25 Nov 2012)

Hi Folks

Basically, I am facing redundancy from my current job. I am recruitable and I am in the process of a number of interviews so I am not overly concerned. 

In saying that, I am worried in the long term that things might not go my way and I might not get a job.

I am looking at a decent package from work which should sustain me for over a year if need be.

My parents however stood as Guarantor for me when I was buying my house a few years ago. They are now both retired and on a modest Pension.

I don't want them to have to ever give a cent toward my mortgage and will do my damm best to make sure it never happens however they are concerned.

My understanding of this situation is that if I refuse point blank to make any further payments and give a two finger salute to the bank that they then come looking to my folks for the remainder. Do I still have the same rights as everybody else in so far as being allowed potentially restructure the loan and so forth to give me a bit of breathing room if I so require? Will my parents be the last call for the bank in recovery of any potential missed payments or will it immediately default to them?


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## Brendan Burgess (25 Nov 2012)

The bank will deal with your first and restructure your mortgage long before applying to the guarantor. 

If you fail to engage or to pay, they will come after your parents. 



> I am looking at a decent package from work which should sustain me for over a year if need be.



You should consider whether it is worth paying that decent package off your mortgage as it will save you a lot of interest. The issue is discussed in more detail here.  

If you do choose to pay a lump-sum, make sure that they agree in writing, that you will be able to take a payment holiday in the future if you need it.


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## dewdrop (25 Nov 2012)

If i may expand this tread to another issue but in ways related there must be thousands of elderly people who are guarnatorsfor their children mortgages and may be wondering what happens when they die.  Even if the mortgage is up to date my understanding is that if the bank?building society becomes aware of their death then they are entitled to call in debt. In most cases if they are married and have a surviving spouse they may be prepared to accept that persons guarantee.. quite frankly i do not know what may happen in event of death and would be interested in hearing from anyone who has experience in this situation. I would add that in most situations the bank would not have supported security for the Guarantee and the assets most likely would be in joint names which would have passed to the surviving spouse before the bank might become aware of the death which would mean the estate would have no asssts


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## wbbs (25 Nov 2012)

I would not think it is normal practice to call in a mortgage debt on death of guarantor, I have never seen it happen.  I know a lot of parents who went guarantor did so on the basis of their income, not additional security.


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