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Would being Guarantor on a loan affect my mortgage application?

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  • 22-09-2013 11:32pm
    #1
    Paulie84
    Registered Users Posts: 9 ✭


    My father has recently requested that I be a Guarantor on a €15,000 loan he needs to buy some land. He is 62 and expects that he will not get the loan without one.

    I am currently saving for a mortgage with my partner and think that we will be ready to apply for this in about 12 to 18 months.

    Can anyone tell me if being a Guarantor for my father will affect my chances of getting a mortgage?


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    #2
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Paulie84 wrote: »
    My father has recently requested that I be a Guarantor on a €15,000 loan he needs to buy some land. He is 62 and expects that he will not get the loan without one.

    I am currently saving for a mortgage with my partner and think that we will be ready to apply for this in about 12 to 18 months.

    Can anyone tell me if being a Guarantor for my father will affect my chances of getting a mortgage?

    OP if you are thinking of getting a mortgage in the future I would not recommend that you act as guarantor for your Dad. As guarantor you will be legally responsible for paying back the loan should your Dad default for any reason such as illness, unemployment or even death. This could damage your credit record and will also show up on the Credit check that the lender will carry out when processing your mortgage application and could possibly result in your mortgage application being declined.


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    #3
    Paulie84
    Registered Users Posts: 9 ✭Paulie84


    Thanks for that. You've been very helpful.


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    #4
    phormium
    Registered Users Posts: 3,326 ✭✭✭phormium


    Will certainly affect your borrowing capacity as you will be considered responsible for those loan repayments too and they will be factored in to the calculations when the bank decide how much you can borrow.


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