Revoking Mortgage Guarantee

danash

Registered User
Messages
136
Does anyone have any experience on how to go about revoking a mortgage guarantee ?

Would the bank have to act on the guarantor's request and call in the loan or is the guarantor stuck with the contract for the term ?
 
Does anyone have any experience on how to go about revoking a mortgage guarantee ?

Would the bank have to act on the guarantor's request and call in the loan or is the guarantor stuck with the contract for the term ?

I suspect the guarantor is stuck with the contract for the term UNLESS the bank are willing to release them. They can but ask.


mf
 
I suspect the guarantor is stuck with the contract for the term UNLESS the bank are willing to release them. They can but ask.


mf


I can understand that - but if I want out of the guarantee and there is no capacity on the mortgagee to repay will it trigger a calling in of the loan ?

Surely I can release myself from the guarantee and as long as the bank can recover their security they should be happy ?
 
Sorry am I missing something here or are you trying to get out of the implications of having acted as guarantor now that the fact that you went guarantor may have an implication?

Why do you think the Bank would allow you to revoke your guarantee? What's in it for them?
 


Why does there need to be anything in it for them ? If I want to change a legal situation then surely I can do that. I was wondering about the process. It seems to me that if I seek an order from a court to revoke the guarantee then the bank would look to call in the loan and seek possession of the property to recover their mortgage. I was wondering if anyone had experience of this.

I can enter a guarantee freely and as long as there is adequate security to cover the mortgage I cant see why the bank would hold me to the guarantee - they would simply repossess.


I am not trying to evade my responsibility as guarantor - circumstances have changed now for why the bank needed my guarantee so I dont need to be on hook for this currently.
 
"Why does there need to be anything in it for them ? If I want to change a legal situation then surely I can do that. I was wondering about the process. It seems to me that if I seek an order from a court to revoke the guarantee then the bank would look to call in the loan and seek possession of the property to recover their mortgage. I was wondering if anyone had experience of this.

I can enter a guarantee freely and as long as there is adequate security to cover the mortgage I cant see why the bank would hold me to the guarantee - they would simply repossess.


I am not trying to evade my responsibility as guarantor - circumstances have changed now for why the bank needed my guarantee so I dont need to be on hook for this currently."

I think you are missing the big point here. Being a guarantor is not something you can opt out of at will. The bank have no obligation to release you and a Court cannot compel the bank to release you.
As a guarantor, you are responsible for the repayment of the loan. You are legally committed to this and there is zero reason for the Bank to release you from this obligation. In fact, they would be foolish to release you - you may be able to exert pressure on the person you went guarantor for, to deal with the issue.

Repossession by the bank is a last resort. It would be far more cost effective for everyone if the borrower sold the house ( if that is possible) and was able to redeem the mortgage , which would mean that you were automatically released from your obligations.

mf