Do parents make for good loan Guarantors?

Sometimes, younger people or those with little to no credit history may be required to name a guarantor in order to secure the finance they require. A natural first port of call in this circumstance may be one’s parents. But do parents make good guarantors? Let’s find out…

Let’s back up just one second. What is a guarantor? A guarantor is essentially someone who promises to make loan or other credit repayments, should the borrower be unable to make them him/herself.

There are, of course, many loans available from lenders who don’t require a guarantor, but often a lender may ask for a borrow to provide a guarantor if they have a poor credit history or no credit history at all. This gives the lender a level of confidence that, even if the borrower can’t make the repayments, they will still be made. Read more about this at the Experian site.

Steps to take if you are struggling with mortgage repayments

A mortgage is almost always the payment you should prioritize above all other bills or outgoings such as credit cards or unsecured loans. Losing your home is a real possibility if you can’t keep up with your repayments so whatever you do, you should try and get the mortgage paid each month on time.

But what happens if you start to struggle with your repayments? What steps should you take and what should you do. In this article, we examine some of the best courses of action.