Guarantor or Joint Applicant ??

[foxi_fitzi]

hey guys,

Before you ask, yes I am asking my mortgage adviser, but I'm waiting all day for them to return my call and to be honest, curiousity is getting the better of me!

Me and the bf are approved in principal and learned that the parent we were using to guarantor us has not been used as a joint applicant....

Please if anyone understands, knows the implications of having a parent as joint applicant, what are the risks for them, ie could they lose their home??

I'd really appreciate any knowledge on this guys.

Thanks again,

F

 

[foxi_fitzi]

oooups sorry second paragraph correctly should read:

Me and the bf are approved in principal and learned today that the parent we were using to guarantor us has been used as a joint applicant instead....

what are the implications, risks etc. for the joint applicant?? tnx

 

[grizzcol]

joint applicant would surely mean then that as well as guaranteeing the debt they would also have a claim / ownership of a percentage of the property?

 

[Ms X]

A parent can be a joint applicant and have no interest in the property. i.e. on the mortgage but not on the deeds. (sometimes a requirement of a bank)

So as soon as the person can afford to pay the mortgage themselves, the parent can be removed (without any tax implications)

I think if you default on a payment I think your parent will be looked to to make a payment. If that fails you house is at risk.

 

[foxi_fitzi]

Thanks grizzcol and Ms X for your feedback,

I'd prefer the parent to be guarantor, as it even sounds like there's more risk for them being joint applicant.

But we gotta do what we goota do, fingers crossed they will be happy with this!

Thanks again guys.

F

 

[smmb]

If they're a joint applicant and you fail to make a repayment, any applicant can be chased for the debt, therefore they could be chased through the courts in their personal capacity. Much the same as a guarantor

And if they happen to have a mortgage themselves with the same financial institution and its an all sums mortgage their own house can be called upon if it gets that dire. It is easier and of the same benefit to a bank to have them as guarantor and its easier to release a guarntor than an 'applicant' further down the line.