Guarantor on a mortgage

[Abouttimemum]

Hi all,

Does anyone know what happens to a mortgage guarantor when the borrower dies?

I’ve searched and searched online and can’t see anything. I’m wondering specifically if the payments would default to the guarantor, or if the situation would be put on hold during probate, and also would the guarantor then still have to be guarantor if the mortgage transferred to a dependent of the borrower (via inheritance) I presume it ends if the property is sold.

Basically, how does the guarantor get out of the agreement if the borrower dies?

Any info much appreciated!

Presumably a life policy would pay off the mortgage in practice. Have you checked?

Either life insurance, but more likely through the sale of the property after which the mortgage is settled and balance distributed in accordance with the will or intestacy rules. If there is a balance to pay due to negative equity, they'll come after the guarantor for the balance. If you are a guarantor you should have a copy of the paperwork in which terms should cover this eventuality.

Thanks both, much appreciated. There’s a life insurance policy but it won’t cover the mortgage. However, the sale of the property would as there’s lots of equity in it (albeit some of it would go to exh)