BoI told daughter post grad loan ok, now refused. Pls help

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dubinamerica

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My daughter finished her degree this year and was accepted into a post grad, one year full time. She approached the BoI a number of months ago and was told that there would be no issue obtaining a loan. She went in again recent and was told the same. Today she was told the loan has been refused and they are looking for a guarantor. I am recently divorced and trying to sort out taking over the mortgage on the family home. Money is very tight and I would be amazed if they accept me as guarantor and if they do, will this impact my own application to my building society to take over the mortgage on our home?
My daughter is financially independent and working part time to support herself, however she will not get the grant What are our options to get this sorted? What is involved in becoming guarantor and if that fails what can she do?? She thought this was all set based on what BoI staff told her and now she's in a complete meltdown.
 
dubinamerica said:
My daughter finished her degree this year and was accepted into a post grad, one year full time. She approached the BoI a number of months ago and was told that there would be no issue obtaining a loan. She went in again recent and was told the same. Today she was told the loan has been refused and they are looking for a guarantor. I am recently divorced and trying to sort out taking over the mortgage on the family home. Money is very tight and I would be amazed if they accept me as guarantor and if they do, will this impact my own application to my building society to take over the mortgage on our home?
My daughter is financially independent and working part time to support herself, however she will not get the grant What are our options to get this sorted? What is involved in becoming guarantor and if that fails what can she do?? She thought this was all set based on what BoI staff told her and now she's in a complete meltdown.
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dubinamerica.

In becoming a guarantor , you sign that if she does not repay ,then you will accept her debt and repay any outstanding amount.
You are not locked into a payment pattern, it is usually just an add on by Mr Bank to make sure they get paid, ie you pay if daughter does not..
Think about it , would daughter like Mammy being on the hook for daughters debt?
I can,t see it having an adverse impact on your mortgage hassle and as you say yourself she is financially independent.
 
Hi, I contacted BoI today and was told that this shouldn't impact my credit rating - so that if I go to sort my own mortgage stuff this shouldn't be a problem. I've agreed to sign an guarantor but I don't know if that will go through. It *should* go through ok but her loan application should have gone through without an issue. Over the phone they indicated that it was a security measure as she didn't have an account with BoI but she's had an account with AIB for years and could show them payslips etc. I'm just hoping this goes through ok but now it looks like she may have to pay out a late fee to the university as she's going to miss the payment. Very frustrating as she had been told months ago that it should all be ok but if we can just get it sorted within the next few days she will be happy.
 
I understand that you wish to help your daughter but I would be very slow to provide a guarantee. You would be liable; for the money borrowed, for all interest, for all collection charges. These can escalate well beyond the amount initially borrowed. Remember your are dealing with an organisation that has let your daughter down once already.

You might have to tell your mortgage provider about the guarantee, and I think that they might well reduce the size of the loan they would give you to reflect the guarantee.

It would be far better to borrow the money yourself to give your daughter. Guarantees are usually a bad idea.

Maybe AIB will give her a loan. Good luck.
 
One thing to watch out with these guarantess is if they are open ended. Meaning with no end date to the actual guarantee. I'd sign it now to get her the loan. But once the loan is paid back, CANCEL the guarantee.

It would be helpful if you could scan the guarantee, leaving out identifying details.
 
Generally no issues re these type of loans. I have experience on both sides of the fence. BoI offer post grad loans up to 7k generally on basis of parent guarantee. repayments to commence usually Sept after completion of course. A guarantee is not something that you need to report to your mortgage provider. It's a contingent liability.
Also guarantees are open-ended as per Bronte's post. Not any kind of sneaky behavior on the part of the banks. This is just the way guarantees have always been. It's your daughter! She won't get the loan without you signing the guarantee so that's your option! Not a big deal really!
 
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