Guarantors

D

dv8

Registered User
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Hi guys,

Does anyone know if a guarantors income is assessed by the lenders?

Do they require that a guarantor, who is 48 in this case, by fully able to service a loan should the main applicant default in anyway?
 
guarantor guarantees to repay the entire loan. it is not something to be entered into lightly.

anecdotedly one hears of stories where parents of one party went as guarantor, relationship floundered, house must be sold and any loss is visited upon the generous (but foolhardy) parents.
 
dv8 said:
Hi guys,

Does anyone know if a guarantors income is assessed by the lenders?

Do they require that a guarantor, who is 48 in this case, by fully able to service a loan should the main applicant default in anyway?
Click to expand...


Would it be possible to set up as joint borrowers joint title so that you are both equally liable instead of having sole applicant sole title if this is proving a problem? Perhaps also a possibility to ask for life assurance to be waived for the second applicant given their age?

Another possibility might be to look at the person who is going as guarantor to give a cash gift (with a letter saying that this is a gift and will not have to be repaid).

The guarantor will have to prove his/her ability to repay the whole loan.
 
Thanks for those replies folks.

PM1234 the problem of putting the parent as a second applicant would be that it would reduce the term too much making it unaffordable based on incomes.

Or are there lenders out there who will take the case of 2 applicants & calculate term on the person with the lower age if this person is the main applicant?
 
dv8 said:
Or are there lenders out there who will take the case of 2 applicants & calculate term on the person with the lower age if this person is the main applicant?
Click to expand...

Yes. In this situation, and with that of a guarantor, applications are assessed on a case by case basis. Some lenders require the guarantor to be liable for the full debt, some will limit their exposure to the level of mortgage over and above the amount the main applicant qualify for on their own.

A good broker should be able to recommend the best lender(s) for your circumstances and present your case positively.

Sarah

www.rea.ie
 
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