Problems with interest rates and repayments? Ask for home loan help.
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Many lenders now have specific guarantees and loan types to enable parents to help their family to obtain housing finance. Some are written only for the deposit amount and the loan structure is such that this is the first portion of the loan that is repaid.
A liability for somebody else’s debt may also limit your own ability to borrow as the debt may be secured by way of Mortgage over your assets and lenders may included responsibility for the repayments in their debt servicing assessment.
Before agreeing to act as guarantor you should first satisfy yourself that your son can and will repay the debt because if this is not the case the lender will ask you to do so and if not what will be the outcome and effect on your financial position. Then seek qualified legal advice to explain your obligations before you agree to act as guarantor and most responsible lenders will insist on this as a requirement.
Just because the borrower is family doesn’t mean that you are obligated.
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