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What is a insurance guarantor?

what is a insurance guarantor

Who else may serve as a guarantee?

Who may serve as a guarantor? – Virtually anybody may serve as a guarantor. Usually a parent or spouse (so long as you maintain separate bank accounts), but occasionally a friend or family. However, you should only serve as a guarantee for someone whose repayments you are willing and able to cover.

  • To be a guarantor, you must be at least 21 years old, have a solid credit history, and be financially stable.
  • This adds credibility to your application if you are a homeowner.
  • Whether you are contemplating asking someone to be a guarantor or have been approached by a family member or friend in need, you must be aware of the potential financial dangers.

If the borrower fails to return the loan, you will be held liable for the debt. In addition to the financial hardship, these circumstances can also result in broken friendships and family strife. Both the borrower and the guarantor should carefully consider their ability to continue making payments.

There are additional regulations if you agree to your tenancy before your guarantor signs the guarantee agreement. Contact your local Citizens Advice if this describes you.

How would my status as a guarantor impact me?

Will being a guarantor impact my ability to obtain a mortgage? – Your ability to get a mortgage should not be affected by your status as a guarantor, unless you are asked to make repayments. Since you will be inheriting the debt, you will be at danger of not being able to repay, and if you don’t keep up with payments yourself, your credit score will suffer.