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Guarantor for Home Loan Mortgage

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  • 09-04-2013 3:03pm
    #1
    dewdrop
    Registered Users Posts: 265 ✭✭


    Has anyone any experience of a Banks reaction when say A guarantor for a Home Mortgage dies. The actual Mortgage is perfectly in order and the borrower has a job. No seperate security is held from the Guarantor. I assume a bank cannot ask the borrower for alternative security as in effect their security is of no value in event where the Guarantor has no assets,


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    dewdrop wrote: »
    Has anyone any experience of a Banks reaction when say A guarantor for a Home Mortgage dies. The actual Mortgage is perfectly in order and the borrower has a job. No seperate security is held from the Guarantor. I assume a bank cannot ask the borrower for alternative security as in effect their security is of no value in event where the Guarantor has no assets,

    The bank can't ask for additional security. If the guarantor was required by the lender to have a mortgage protection policy and it was assigned to the lender they would use the proceeds of the policy to reduce the mortgage debt o/s. If the guarantor has a life policy but it's not assigned they can't go after the proceeds. If the mortgage repayments are up to date and the main borrower is repaying the mortgage in good order the bank will be more than happy for that to continue as is.


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