Financial Glossary of Finance Terms Guarantor

A Guarantor is a person who will guarantee to pay the mortgage in the event of default by the borrower. Usually the person is a close family member ie. parent or relative.

Just because a borrower has a guarantor does not necessarily ensure that a mortgage will be approved as the guarantors credit score must also be taken account.

Mortgages Expert would advise seeking legal advice before becoming a guarantor so that you fully appreciate what your obligations are as once you have signed as a guarantor as it is at the lenders discretion to release you from your obligation.