Who can’t be your guarantor
A parent or legal guardian can’t act as guarantor when applying on behalf of a child or dependent adult.
Can two people be a guarantor?
Guarantors for a joint tenancy – Joint tenants are ‘jointly and severally liable’ for rent. This means each joint tenant can be held liable for the total amount of rent, not just their share. A guarantor agreement for a joint tenancy works in the same way.
Who can be considered a guarantor
The Bottom Line – A guarantor is an individual that agrees to pay a borrower’s debt if the borrower defaults on their obligation. A guarantor is not a primary party to the agreement but is considered to be an additional comfort for a lender. A guarantor will have a strong credit score and earn sufficient income to meet the obligation.
- Having a guarantor on a loan agreement greatly benefits the borrower.
- It allows for an agreement to be approved much faster and often at a higher amount.
- In the event a borrower defaults, the guarantor must meet the obligation.
- If they do not, they are still liable and can have a lawsuit brought against them for the outstanding amount.
They will also see a negative hit on their credit score.
Can a guarantor be an uncle
Although most lenders require the guarantors for your loan to be your parents, some lenders may accept guarantees from close family members. This means that your uncle may be able to provide guarantee for your home loan.