2007-09-19 07:22:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Credit
They basically guarantee the whole amount.
What it comes down to though is that they guarantee that the monthly payment will be made. If you don't pay one month, then the guarantor will have to pay it.
So if your mortgage payment is £600 a month, then the guarantor would have to pay the whole £600 for that month if you don't pay, not just part of it, so you can see that technically they are covering the whole amount.
If you default though, they wouldn't chase the guarantor for the amount of the mortgage, they would reposses your house and sell it, although if there is a shortfall then they could chase the guarantor for that.
2007-09-19 08:37:49 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Assuming you are "extending" (i.e replacing) your existing Mortgage, with a new Mortgage, the Guarantor will apply to the new total payments.
If you are getting a "second Mortgage" either as a distinct product or from a different company, the Guarantor will apply only to the new (separate) payment.
NB> It is possible to have two Mortgages with the same Company and for that Company to insist that the Guarantor signs a contract that covers both payments .. after all, if they don't trust you to make one payment why should they trust you to make another ?
2007-09-19 08:25:28 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
A guarantor guarantees whatever they agree to. It'll be written into the guarantee document. I've recently guaranteed my daughter's loan of £xxx - that's all I'm liable for if she defaults.
I'd guess you've had an extension to your mortgage declined so you've taken a guaranteed loan instead, that'll be what the guarantor has agreed to support.
2007-09-20 01:54:02 · answer #3 · answered by champer 7 · 0⤊ 0⤋
Which ever one they put there signature to - if you don't pay it they will chase them for the money.
2007-09-19 21:46:03 · answer #4 · answered by Jackie M 7 · 0⤊ 0⤋