What is a Mortgage Guarantor

If you’re considering taking out a mortgage, you may be wondering what a mortgage guarantor is and whether or not you need one. In this credit repair article, we’ll discuss what a mortgage guarantor is and why they might be important.

A guarantor home loan enables you to enlist the help of family members or others close to you, who will agree to repay your debt if you cannot. A guarantor typically needs to provide collateral, such as property equity, for a portion or all of the loan amount.

If you’re unable to make your mortgage repayments (including any interest or fees), the person who co-signed your home loan may have to cover them.

A guarantor loan works similarly to a regular home loan: you take out a loan and repay it. However, if something goes wrong, the guarantor’s equity serves as supplemental collateral. This means that the bank would only need to seize your home if neither you nor your guarantor can make the repayments.

Once you pay off the loan’s principal, your guarantor will no longer be liable for any missed payments.

A good credit score is important to have if you want to be able to finance a large purchase, like a car or a home. You also need a good credit score to get approved for certain types of loans and lines of credit.

Having poor credit can feel like being caught in quicksand, but there are options available that can help you get back on your feet. Clear Credit Solutions is a credit repair service specializing in removing negative listings from your report so that applying for finance becomes possible again. Get in touch with us today to see how we could improve your situation with our credit repair process!