Husband guaranteed his friends mortgage so I want to separate.

[HoveactuallyBrighton]

Exactly what the thread title says.
Our home's at risk if his friend can't pay the mortgage.

What happens to the mortgage guarantee when we separate?

What an idiotic thing to do.

I must speak to the friend and find out if the mortgage is still guaranteed.
In case he lies to me and says its expired if it hasn't, how do I find out the truth?

Get your DH to give you the facts first. It is honestly pretty unclear from your posts what the situation is.
Then if you don't trust your DH or he's not showing the paperwork to back it up then speak to the friend.

What has been signed? What is the commitment for in ££: and how is the house being used (as surety for the guarantor?)? What is the friend position re the old house and what is the term of the guarantee.

Breathe deeply write down the questions and write down the answers.

Their home is at risk not because friend's mortgage is secured in OP's house, but because her DH is guarantor. The friend's mortgage is secured against OP's DH, so his income and anything he owns, including their home the entirety of which is a marital asset.

If the friend doesn't pay their own mortgage, the friend's mortgage company will come after OP's DH for the payments, they won't chase the friend he's already been deemed to have no money hence him needing a guarantor. When OP's DH can't pay friend's mortgage forever either, he'll have to sell his and OP's home to clear the friend's debt. Or else the friend's mortgage company will bankrupt OP's DH, so they'll lose any savings and expensive stuff they have (because those are marital assets too), which will be taken towards paying the debt. Also OP and DH won't be able to get a remortgage etc for their own home when the time comes, due to having a bad credit rating. Bankruptcy being as bad a credit rating as it's possible to have.

Being a guarantor could destroy their lives.

If someone needs a guarantor there's a good reason for that, it's literally because the financial institution offering the loan doesn't trust the person will be able to repay it - they've weighed up the odds, reckon they're likely to get shafted and are looking for someone else who they can shaft in turn...the guarantor.

If OP divorces DH now, she'll walk away with hopefully at least half of everything they own, then any risk from being guarantor is solely on her DH's head. If the situation goes tits up OP can walk away with her savings, property, credit rating etc intact.

Does your DH have the means to make the payments if your friend defaults, whilst maintaining his own mortgage payments? If so, your house isn’t really at risk.

Why would he do that? Is his friend promising to pay him if he does? It sounds like a crazy risk to take. I don't blame you from wanting to be away from all of this.

Ok so to clarify,

the friend is selling his home and bought another, before the first sold, so needs a bridging loan till it does.
your husband went guarantor to support this.

so basically they can drop the price a bit and sell quickly if they need to,and mortgage payments just need to be made for what is likely a short period until it’s sold.

And worst case if the friend really has no money to pay the bridging loan, which is hugely unlikely as they have passed affordability checks your husband would need to support with the monthly loan repayments till it is sold

is this right? I’m not really sure how this puts your home at risk? Unless you really think this property will not sell, the friend can’t afford the bridging loan and your husband can’t afford the monthly repayment either?

You should be on the deeds, just because you ‘aren’t earning enough’ makes no difference the mortgage is usually cheaper because they have 2 people on the repayments so if one doesn’t pay the other will.

You're a risk if you're guarantor for someone because it's relying on trust. They can just stop paying and nothing much happens to them. Many people have a selfish streak and do exactly this because they don't care about their friend being hit with the loan repayments instead of them. Or they only care up until the point there's a falling out between the two friends. Or until something goes wrong in the friend's life and rather than be too badly impacted themselves, they attempt to maintain their lifestyle by stopping the repayments, leaving their guarantor to pay.

The risk for the guarantor is not just about the friend's current ability to pay the loan/mortgage. It's about whether the friend has a selfish streak a mile wide or not. And about chance, like if the friend had a life changing accident tomorrow that decimated their earning power and caused additional lifelong bills from lasting disability, for example.

I'm concerned cos my husband thinks it's acceptable to buy something unaffordable and what if the person loses their job or can't work thru illness?
Why should I risk losing £2,000 a month cos someone wants a big house to show off?

Might sound mad, but OP is there any chance your DH is being blackmailed by this 'friend'? Does the friend know something about DH that you don't, for example?

I don't know.
Its all odd to me.

I doubt this.

The DH will trust his friend to make the payments. There may well be savings that would cover the payments if the DH did have to make up any shortfall, which the DH would have faith he would get repaid once the house sale was settled.

Should the DH have done this without talking to his wife? Absolutely not. But that doesn’t mean the DH has been blackmailed, or anything similar - he trusts his friend.

Get legal advice ASAP. Anyone who is a guarantor is an idiot

Do you think the friend is gaslighting you too?

Christ, OP - your DH is a fucking idiot!

I'd be seriously tempted to LTB.

How dare he jeopardise your family home to help out a mate?!!

It's only in his name cos he won't put me on the Deeds cos I'm not earning enough to contribute to the mortgage.

But he's willing to put his entire financial future at risk to act as guarantor to a friends?

Does he understand he is liable for the money if for any reason friend defaults?

You can get on the mortgage and be added to the deeds despite no/low income - it may affect amount you can borrow and even with out you being on deeds it would count as a marital asset.

I think I'd be bloody annoyed in your place - no conversation about it - fuck that - I'd be extremely worried about any legal and financial ties going forward with your DH - though if friend keeps payments up should have no implications for you.

Well, that’s half the kids of MNers fucked, then!

Surely he’ll be a guarantee for the life of the mortgage otherwise he’d need to apply for a new one.

Anyone who is a guarantor is an idiot

Only way DD1 at Uni can get accommodation next year. She and we have looked very carefully - we can cover her rent liberality if we have to an their is insurance in place and as it is just her renting it just means we are liable for her.

It's a measured risk - we'll likely have to do for all three - no sure about post uni may still need a guarantor theses days to rent privately at all. Wouldn't do it for a mate and mostly not for most of our relatives and even our kids we need a lot of info for and a lack of other options.

You need to get legal advice ASAP. It's unacceptable to not have your name on the house deeds anyway imo. I've been a stay at home mum for most of my marriage (we have a severely disabled son) and our house is in both our names. Your contribution to the marriage is more than monetary.

Get the divorce rolling and get your share of the assets out asap. So long as everything is in your husband's name, you're fucked if friend stops paying the mortgage.

I don't see how you can be added to the house deeds, because of him saying that you cannot afford to pay half on the mortage. I don't see him agreeing to that. And you may be married but you are not on the deeds, and as women we get a sxxt deal. You at least need paperwork for any thing that you have paid for in the house as proof. Has he made a will at all? I don't like his attitude at all, and you need to look after you.

I'm tired from thinking.
I feel undervalued and unappreciated.

Did you post about this last month, I remember an exact post with the op not being on the mortgage/deeds either. If so is this the second time he’s doing them?