Mortgage guarantors and arrears

cabbage crotch

I'm looking for peoples' experiences in relation to mortgage guarantors and the mortgage in question falling into arrears. My mother signed as guarantor for a relative a few years back, and circumstances are that the relative is unable to pay the full repayment at the moment. They've arranged an interest-only plan and payments are being met for now, but my mother intermittently gets warning letters from the bank stating the agreement is unsustainable in the long-term and they may seek repayment from my mother. She's in her 70s and naturally distressed somewhat about the whole thing, but the bank refuses to engage with her about it and tells her she needs to talk to the relative involved, who unfortunately is determined to stick their head in the sand and refuse to speak about the matter.

I'm sure she's not the only guarantor in this situation. Right now she's not overly worried the bank is going to try and take her home to recoup the debt, but at the same time she's frustrated that the bank threaten to chase her for the debt but then won't engage with her. How much are guarantors entitled to know about their potential liabilities in terms of mortgage arrears?

Pro Hoc Vice

Get legal advice. Everyone's experience will be very different. Your mother may be very happy to get legal advice. Did she get independent legal advice at the time. She really needs a lawyer to check the guarantee.

Stheno

In relation to your last sentence, it does sound like she is being kept up to date.

Guarantors are there exactly as you have said, in the instance that the original person taking the loan is unable to repay it, the banks have a second option to pursue.

Your mother may find it useful to talk to MABS and get some advice?

cabbage crotch

Thanks. She can't be the only person who has been through this so I'm hoping other posters could share their own experiences (I'm not seeking legal advice here just to be clear!).

She's being kept up to date in so much as they keep writing to her telling her she's liable for the debt, but when she asks if there are any payments being made they say she needs to talk to the relative concerned. Relations aren't great with the person involved, it's only through another relative she knows that there are some payments going through.

cabbage crotch

infosys wrote: »

Did she get independent legal advice at the time. She really needs a lawyer to check the guarantee.

No, she was asked to be guarantor on the basis the person hadn't been in their job for 12 months and assumed (never asked apparently!) that once the person hit their 1 year mark at work she'd cease to be a guarantor. She kept no copies of anything she signed. There's no issue of her being misled by any professionals or anything like that, she just made an incorrect and costly assumption about her role as guarantor.

Can she request a copy of the guarantee from the bank?

Pro Hoc Vice

cabbage crotch wrote: »

No, she was asked to be guarantor on the basis the person hadn't been in their job for 12 months and assumed (never asked apparently!) that once the person hit their 1 year mark at work she'd cease to be a guarantor. She kept no copies of anything she signed. There's no issue of her being misled by any professionals or anything like that, she just made an incorrect and costly assumption about her role as guarantor.

Can she request a copy of the guarantee from the bank?

Please, please please go see a solicitor do noting till you see a solicitor. Really the internet is the last place she should take advice on this. Arrange an appointment with a good solicitor next week.

BuffyBot

You may not think you're seeking legal advice, but what you really need is proper, qualified advice on a matter like this. The serious level of consequences this could have alone merits consulting someone who's opinions have merit.