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AIBU?

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Original poster

Parent signing as guarantor

17 replies

Stripeytopgirl · 21/07/2020 21:33

Not so many years ago, child signed a mortgage with parent chikd didn’t have any financial gain when parent sold the house for a profit and brought a bigger house (which they were no longer a signature on.) They just did it to help out when parent needing it. Unknowingly at the time child gave up any future perks of being a first time buyer.

Now the same child needs parent to sign as a home owner guarantor so they can rent a property with their children. They have never had rent arrears, no anti social behaviour etc etc and been renting for 6+ years.

YABU - your parent shouldn’t sign as guarantor just because you helped them

YANBU - parent should sign to return the favour

& yes, I am child 😂

OP posts:
Waveysnail · 21/07/2020 21:38

Totally up to the parents. Their choice however they shouldnt feel forced by the child.

MalificentJones · 21/07/2020 21:43

How old were you when you had a joint mortgage with them?

I don’t think you being on their mortgage means that they owe you this. Unless they did it without you knowing what you were signing which it doesn’t sound like they did.

ChicCroissant · 21/07/2020 21:46

OP, I think you've written about this before and it's obviously something you feel very strongly about. Being a guarantor is a really big ask of anyone IMO.

CatFaceCats · 21/07/2020 21:52

I’ve recently just had to ask my mum to sign as guarantor for me. I’m moving out and it’ll be just me and my children.
We sat and went through my finances so I could show her that I can afford it.
She was happy to do it, and my lease is a year so worst comes to worst, she said she has the amount for a years rent sat in savings and if she has to help, she will and I can pay her back.

I think it’s brilliant when a parent can (and wants to help) but they don’t owe you it.

abstractprojection · 21/07/2020 21:54

To guarantee someone’s rent you do need to be able to pay if the rent if the other person for whatever unforeseen reason can’t. But generally speaking yes I think parents should help their adult children, and adult children help their parents. It’s called family.

SharonasCorona · 21/07/2020 21:57

Unknowingly at the time child gave up any future perks of being a first time buyer.

What perks of being a first time buyer?

When you sell a house and no house, and want to buy another house, you're a first time buyer again.

There is no database that says Stripeytopgirl can't be a first time buyer.

E.g. the stamp duty freeze is for everyone buying a home up to £500k.

When you were on your parent's mortgage, did you contribute to the mortgage in money?

MaggieFS · 21/07/2020 22:03

What did you actually do when you say signed a mortgage with parents? Why did you need to?

As pp has said, if you defaulted, could they afford to cover your rent?

MaggieFS · 21/07/2020 22:03

What did you actually do when you say signed a mortgage with parents? Why did you need to?

As pp has said, if you defaulted, could they afford to cover your rent?

LolaSmiles · 21/07/2020 22:07

Without more information I'd say the parent should help, however being a guarantor makes them massively liable if your situation changed and you couldn't pay. Being a guarantor could see some parents lose their home. It's not to be taken lightly.

What was your responsibility/reason to be signing your parent's mortgage?

custardbear · 21/07/2020 22:10

My in laws signed as a guarantor for me and DH with our first house because we were both students and needed their support. The mortgage was around £175 a month back then 2001) so far less than our rent had been ... it really set us up on the property ladder and I'm really grateful they did it! We never defaulted on mortgage and never have since ... long may that remain!

If I was in a position I'd definitely do that
With my children (they're only young though so may be retired by then!)

Chocoholic12 · 21/07/2020 22:10

YANBU OP. You posted about this ages ago didn't you? I remember the thread.

slashlover · 21/07/2020 22:11

When you sell a house and no house, and want to buy another house, you're a first time buyer again.

You're only a first time buyer once. OP wouldn't have been able to get a first time buyer ISA as an example.

cabbageking · 21/07/2020 22:12

It is their choice rather than a pay back situation sorry. Would be nice however.
A NI check is completed as part of the process to confirm first buyer status.
It will show you have been on a mortgage and are not a first time buyer.
Perhaps you need to discuss this with your family.

Northernsoullover · 21/07/2020 22:14

She diddled you out of 40k. I'd ask for sure.

user1471457751 · 21/07/2020 22:24

For those pointing out that being a guarantor comes with liability to pay the rent, the same comes with being on a mortgage. The child in this case was exposed to a much greater financial risk being on the mortgage than the parent will be by being a guarantor

slashlover · 21/07/2020 23:09

What age were you at the time OP?

Jessemer · 21/07/2020 23:12

@SharonasCorona

Unknowingly at the time child gave up any future perks of being a first time buyer.

What perks of being a first time buyer?

When you sell a house and no house, and want to buy another house, you're a first time buyer again.

There is no database that says Stripeytopgirl can't be a first time buyer.

E.g. the stamp duty freeze is for everyone buying a home up to £500k.

When you were on your parent's mortgage, did you contribute to the mortgage in money?

There are so many inaccuracies within this post!
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