It should be a condition of the mortgage (if it's done properly).Does the brother have to notify the bank if the guarantor of his mortgage passes ??
The bank can leave the charge on the property and not force a sale. When the ownership changes hands that's when the charge becomes payable. IE if you mother passed away and the property was sold or transferred into one of your names.I would say that your mother is at no risk at all
A lot of things would have to happen:
1) Your brother would have to default
2) The house would have to still be in negative equity
3) The bank would have to decide to call in the guarantee
4) The bank would then have to get a judgement against your father or his estate.
5) The bank would have to lodge the judgement as a mortgage against your parents' property
6) The lender would then have get an order for possession
They might possibly go as far as 5) but they would not go to stage 6)
If they did and sold the house, they could only claim against half the proceeds.
Brendan
12 yrs before they need to be renewedJust remember that statue of limitations can apply to guarantees.
It's worth getting professional advice on this to get an answer for your parents so they are not worrying about it.
I think @Jim Stafford has written about this previously, either here or on his website.
Well then there is no problem. How much is the NE?He is guarantor on the whole amount for the life of the mortgage. Yes brother is paying. Another 20 years to go on the mortgage
The guarantee only becomes an issue if your brother fails to discharge the mortgage.Approx 100k
Yes I understand that. I just wanted to see what kind of hold the bank would have over the house in the next 20 yrs given that Father is very unwell now.
does the executir have to inform the bank of his death( bank that sons mortgage is with)?
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