Being a guarantor for guarantor loans in UK is not an easy job. The amount of responsibility that you hold is quite enormous and if for any reason the borrower, whom you have signed as the guarantor for, cannot pay back his loan you will be the one in a fix, having to pay back the loan. That, at the end of the day are the terms of the agreement that you will have had signed.
Now, there may be a number of reasons that at some given point during the duration of the loan you may want to back out of your role. Perhaps you want to take a loan of your own (which you cannot do till you stop being a guarantor) or you can feel it causing a strain on your relationship and want to pull out before you fall out with the person. Whatever your reasons may be, it is hard getting out of such a contract and there are very few ways to do that since everything that you do has to be legally binding.
How to quit being a guarantor?
- One of the ways you can get around being a guarantor for guarantor loans in UK is if you have information that the borrower that you are guarantor for has taken a loan over the original amount that you have not given consent for. This is the quickest way to stop being a guarantor; but you will still be held liable to pay back the amount on the original amount that is outstanding.
- If by some miracle you manage to find a substitute for yourself, you can always approach the bank with papers for a substitute guarantor to take your place instead. In such a case your credit scores remain intact and you are relieved from all your duties. The bank just has to be absolutely convinced with your reasons for opting out of your role.
- You can also somehow find a way to convince the borrower to pay back the amount faster so that you can get on with your life, and avail of a loan if you need to. However, the borrower has to be able and willing to do such a thing. Help him find a way to pay back the loan as well.
- You can always take legal action depending on your situation. If you have a mortgage on your house or it is in a real estate space, you can always claim being a wilful defaulter when the borrower is unable to pay the money back. You can claim, in court, that you were not given any signs that the borrower would default at all and such. Although this would be a hard case to fight because of the legal papers you have already signed.
Let us be of help to you!
At www.guarantorlender.com you can find out how much of a loan you can avail of and what to expect when you are going to be a guarantor for someone. While being a guarantor is complicated, if you have decided to be one, we can assist you with all your queries about guarantor loans in UK. You can visit us to find out more! Guarantor Lender were voted best service guarantor loans company in the UK 2015.