Acting as a mortgage guarantor

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Acting as a mortgage guarantor
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Bernie66

Joined: 14 Jan 2005
Posts: 13967
Location: Eastoft

Posted: Mon Jul 24, 06 8:33 pm Post subject:
Be very careful, through no fault of yours or your friends you could come very unstuck indeed. It hapened to a friend of my wifes and cost her ï¿½6k and a county court judgement until it was paid. I urge caution.

Cathryn

Joined: 16 Jul 2005
Posts: 19856
Location: Ceredigion

Posted: Mon Jul 24, 06 8:50 pm Post subject:

Jonnyboy wrote:

In the grand scheme of things it is, the current mortgage is ï¿½50k on a ï¿½285k house which they have no problems paying, and have never had problems paying. The increase in payments would be ï¿½60 a month.

What I want to do is help ensure that they get a loan from a reputable high street company, and don't end up in the arms of the low lifes who rip of those who don't fall under the standard criteria.

Thanks for all the advice, hopefully It won't be required at all.

I would love to think that someone whose only income is benefits would have problems getting a loan from a reputable high street bank but with that sort of equity they will eat his hand off. Hey but I am just a cynical CAB adviser utterly fed up of the level of debt that people have let themselves be tempted into.

Bernie66

Joined: 14 Jan 2005
Posts: 13967
Location: Eastoft

Posted: Mon Jul 24, 06 8:51 pm Post subject:
And I am just a cynic. Period

Mary-Jane

Joined: 13 Jan 2005
Posts: 18397
Location: The Fishing Strumpet is from Ceredigion in West Wales

Posted: Tue Jul 25, 06 8:12 am Post subject:

ruby wrote:

Hey but I am just a cynical CAB adviser utterly fed up of the level of debt that people have let themselves be tempted into.

Ditto and ditto.

Jonnyboy

Joined: 29 Oct 2004
Posts: 23956
Location: under some rain.

Posted: Tue Jul 25, 06 8:24 am Post subject:

ruby wrote:

You don't even know these people,

Don't go lumping them in with that crowd, they've both worked all their lives, paid tax and never had debt problems, one had a non fault car accident and the other has serious heart problems, the nhs has basically told them they're scrap, their GP isn't interested, and so they are taking it upon themselves to set up a small woodworking business as a chance to take care of themselves and enjoy some self respect. The garage is where they would run it. And no, no one official is interested in helping start up the business as it they don't plan on trading outside of the local area.

Mary-Jane

Joined: 13 Jan 2005
Posts: 18397
Location: The Fishing Strumpet is from Ceredigion in West Wales

Posted: Tue Jul 25, 06 8:40 am Post subject:

Jonnyboy wrote:

ruby wrote:

You don't even know these people,

Errm, hang on a minute JB - don't get cross with Ruby. I don't think she was lumping your friends in with the many clients of the CAB who've got themselves badly into debt. I read her post as being despairing of lenders being all too happy to fling money at people generally who may not have the ability to be able to look at the long term problem of paying back what they've borrowed, or worse still, not actually understanding the small print and then finding themselves in deep trouble further down the line. And being in the psition of often working at the CAB myself, I appreciate what she's saying. Ruby was just talking generally - not directing it personally at your friends.

Jonnyboy

Joined: 29 Oct 2004
Posts: 23956
Location: under some rain.

Posted: Tue Jul 25, 06 8:43 am Post subject:

Mary-Jane wrote:

I don't think that's clear at all. Let's just wait for Ruby to clarify her response shall we?

Cathryn

Joined: 16 Jul 2005
Posts: 19856
Location: Ceredigion

Posted: Wed Jul 26, 06 6:48 am Post subject:

Oh dear - I didn't realise it would read like that at all. I don't lump people together. Many people I see are in debt through no fault of their own, some because they didn't understand the small print or even the big print, some have become ill and lost even a month's wages, some because they are just daft, some because they thought they could get away with it. It wasn't directed personally at your friends - and here I had made the assumption that they knew what they were getting in to and had read and understood the small print otherwise you wouldn't have considered acting as guarantor as it is clear from your posts that you do have a clue about how the world works.

I had just that day written some letters on behalf of a client who is kicking an addiction. She has a large bank loan - "kindly" put in place to help her repay a small overdraft. This was helpfully sorted out for her while she was (clearly) an addict living with another (known) violent addict and their baby daughter. They also sorted out a credit card for her. The bank is a tiny tiny local branch - everyone knows everyone else there and they would have known her circumstances and her parents, grandparents and all - I would love to go in and tell them what I think of them burdening her with this debt for the next thirty or so years

I was therefore feeling quite bitter about our high street banks at the time I posted.

Sorry Jonnyboy I will be a little more careful posting a "general" response on threads that are asking for direct personal advice but maybe if I can get it across to people that I like using Downsizer and when I post I do it in friendship. I would never post with the intention of having a go at any one individually.

Jonnyboy

Joined: 29 Oct 2004
Posts: 23956
Location: under some rain.

Posted: Wed Jul 26, 06 8:52 am Post subject:
Thanks Ruby, my tone should have been more considered as it's easy to misinterpret things, I do apologise. They haven't come to any decision yet as to what they will do financially, and they have no idea that I'm looking at the issues surrounding being a guarantor. I'm just looking at ways in which I can help them regain some measure of independance and self worth.

jema
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 28233
Location: escaped from Swindon

Posted: Wed Jul 26, 06 9:25 am Post subject:

Funny old thing isn't it the way posts get read.

I actually read what Ruby said and thought it applied well to your friends, I think people with limited income should have "problems" getting a load from a reputable bank, but a "problem" is not the same as a refusal, I'd simply expect them to have to work harded at justifying the loan.
Being self-employed I also expect "problems" with mortgage applications!

marigold

Joined: 02 Sep 2005
Posts: 12458
Location: West Sussex

Posted: Wed Jul 26, 06 10:02 am Post subject:

Jonnyboy wrote:

They haven't come to any decision yet as to what they will do financially, and they have no idea that I'm looking at the issues surrounding being a guarantor. I'm just looking at ways in which I can help them regain some measure of independance and self worth.

Jonnyboy, I have to say I'm very touched by your concern for your friends, your wish to be of practical help and your faith in them. I'm struggling my way back from losing my livelihood (and an awful lot of money) to ill-health myself and know JUST how incredibly hard it is.

From what you have said I very much doubt that your friends would agree to you acting as guarantor - when I made my first post in this thread I thought they had asked you to do it, hence the cautionary words, but now it seems to me very unlikely that they would want to go down that route. Maybe you could persuade them to accept a loan on the basis that it is an investment in their new business?

I wish them the very best of luck with their venture.

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