Hi there,
When i applied for my first mortgage it was recommended that my Dad go as Guarentor on it for the first five years. I remember this conversation with the lending agent very clearly. My father agreed. I had to fill out my application and then my father had to go to see the lending agent to fill out some forms also. I wasnt present at that meeting. Anyway everything went ahead and I signed for my mortgage with my solicitor a couple of months later.
Recently in a number of conversations with my lenders I have been told that my father is in fact co borrower and not a guarentor, I have argued this point with the bank a few times now and they are adamant that he is a co borrower.
This has me very concerned as I may be soon facing redundancy, I have a redundancy policy on my mortgage in only my name which I was advised by my lender to take out. If it turns out my father is co borrower will i be able to claim off the policy i have been paying huge amounts into for the past two and a half years??
Surely if my father was a co borrower he would have had to be present when I signed for my mortgage at the solicitors?
My bank are not helping me with this at all as they are adamant he is a co borrower...Do I contact my solicitor? How do I find out for sure what the true situation is? I am very worried about this as I don't want my father to be liable for any arrears I may have and also I want to own the house I am struggling to pay for, not that my father would ever try to take the house away but if he is co borrower then he is legally entitled to half????
Any advice would be much appreciated.
Hi there,
Yes he had to take out life assurance and I pay it along with mine and all the other insurances. Does this mean he is co borrower? His name does appear on any correspondance that I receive from the bank. I am just really concerned that this is going to prevent me from claiming from my redundancy policy or getting any help towards my mortgage repayments if I am made redundant. I am a lone parent with two children and my mortgage is costing me 1380 per month plus and extra 200 per month off arrears which I was forced into as when i approached the bank a year ago asking for a 3 month payment break they said "no you will just have to fall into arrears"... I approached them knowing i wasnt going to be able to make the full repayment, i wasnt in one cent of arrears when i contacted them. They were as usual completely unhelpfulbut that's another story. I will contact my solicitor today and find out about the deeds.
Thanks
It does sound like you have a joint mortgage. Do you mind me asking if it is a sub-prime lender you are with or are you with one of the main banks?
Not sure how it affects your insurance policy. It shouldn't but those insurance policies are notoriously difficult to get paid from.
No it is with EBS - no subprime. to be honest I have regretted going with them from day 1! they are extremely unhelpful in every situationAs with most people I am in negative equity so cannot even change banks. The redundancy policy is with a company called Genworth which I later found out is actually EBS!
Do you remember if you chose to protect 100% of your earnings under the mortgage repayment protection policy? I am not familiar with the Genworth policy but usually you can split the protection on a joint mortgage e.g 50% of the mortgage repayment covered if you lose your job, 50% if the joint applicant loses theirs or you can cover 100% of one applicant's earnings.
Hi I am in a similar position now. Can't afford my mortgage anymore after 8 years. Filled out a financial statement and they are telling me my father is still on the mortgage as a co-loanee. When I took out the mortgage I was told he was a guarantor. I can find nothing to this only a mention in the loan offer that he was to get mortgage life assurance for a period of 5 years to the value of €25k whereas I was to get the insurance for the full amount of the mortgage(over 350ks). The insurance was automatically cancelled after 5 years as that's the term that was agreed for my father to be guarantor. Where do I stand with this. Can they go after him because I can't pay or can am I entitled to negotiate a debt settlement on my own as I was the only one who ever paid the mortgage and am the only one on the deeds
If this is the only Letter of Offer from the Bank then it should be patently clear whether the loan was approved in sole or joint names. It should also be clear whether a guarantee from your father was required. It makes no sense that a L/O would include a requirement for life cover from an individual who was not a counterparty to the loan!I can find nothing to this only a mention in the loan offer that he was to get mortgage life assurance for a period of 5 years to the value of €25k whereas I was to get the insurance for the full amount of the mortgage(over 350ks).
,,,,,,,,,,,,,,,,,,,,,,,,,,No it is with EBS - no subprime. to be honest I have regretted going with them from day 1! they are extremely unhelpful in every situationAs with most people I am in negative equity so cannot even change banks. The redundancy policy is with a company called Genworth which I later found out is actually EBS!
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