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  1. #1
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    Default Parents helping out

    I have been speaking with a friend who said her parents are going to be 20% guarantors for her and her DH for a home loan, to make it a little easier to get the loan and also so they do not need to pay mortgage insurance. I think that is great her parents are doing that for her and her DH but then made me wonder would my in-laws (my parents live OS) do that for my DH and I.

    How many peoples parents would help them out by being guarantors or 20%guarantors to eliminate mortgage insurance, did your parents/in-laws do it for you or would they do it for you?

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    My parents don't really have much money/assets so I wouldn't ask.

    Even if they did, I still wouldn't ask as I wouldn't want to put them at risk. People have the best of intentions to pay the mortgage but things go wrong sometimes.

    And I would never do it for my children.

    I guess I'm just risk averse.

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    My parents would never do it and I would never ask. They are more of the older school mentality 'the kids should do it all on their own' which is fine. It is their money and we live separate lives. However we will do everything we can to help DD one day. (already planning it and she's 5! ) I want her to be a hard worker but want to help her out as well.

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    I'm pretty sure my parents would do that for me.
    They'd help me in some way in any case.
    Dad already got his mortgage broker to sit down and discuss how much I'd be able to borrow and how i could finance it, etc.

    So even if he didn't give me money, he'd make sure i was getting the best deal and everything (i love my daddy )

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    We have not asked my DH parents to be guarantors, never had the need too. But I would like to be available to my children to help them out if need be, especially if my DH and I own our home out right by that time and are financially comfy. I do not think I would be 100% guarantors, but the idea of 20% guarantors to help them get a home or to stop them having to pay mortgage insurance I would be willing to help - but in saying that I would have to know that my grown up child is in a secure job, etc and would expect them to let me know if it they were having trouble at anytime meeting the payments, so my DH and I could assist.

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    I wouldn't ever want them to go on a loan like that for me.

    If something were to happen so that I couldn't pay the loan they would have to either pay the loan or loose their house. Even if it were something like sickness or death.

    My parents did help us. They gave us a personal loan that we used as a 'deposit' that we pay back to them with interest.

    It's not a contracted loan, so the bank didn't need to know about it when we applied for the mortgage. This way is much much safer. Smaller risk for my parents.

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    Quote Originally Posted by Izy View Post
    I wouldn't ever want them to go on a loan like that for me.

    If something were to happen so that I couldn't pay the loan they would have to either pay the loan or loose their house. Even if it were something like sickness or death.

    My parents did help us. They gave us a personal loan that we used as a 'deposit' that we pay back to them with interest.

    It's not a contracted loan, so the bank didn't need to know about it when we applied for the mortgage. This way is much much safer. Smaller risk for my parents.
    That's exactly what I would do. I wouldn't go guarantor but, if I had the money, I would lend it to them, and (if a large amount) I would secure it with a second mortgage over the property.

    I think guarantees can be okay if the parents have more than one house or a house and a lot of savings (so they can afford to lose whatever amount they guarantee). But if mum and dad are older and just have the family home, then losing it would be devastating or they'd end up having to mortgage it which would impact upon their retirement.

    And that's a good point re sickness. Guarantors will often say "oh, it's okay, XYZ has a good job, will pay it back etc" but they don't think of what would happen if XYZ had a catastrophic accident etc.

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    Yep .
    We are in the process of doing it right now.
    We are getting a "loan" and paying it back and also using their house as equity.
    It was an offer I couldn't refuse. They want us to be able to take advantage of the low interest rates and this could be our only chance to enter the property market..
    My Grandparents helped them out and they are happy to do the same for us.
    I hope I can do the same for my kids...

  9. #9
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    My parents would. I would for my kids. I would possibly be too proud to accept it though


 

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