I took out a mortgage three years ago on the advice of my father. I had earnings of only £6000 per annum and he arranged a mortgage of £50000 acting as the guarantor. circumstances have changed and i am no longer able to pay the repayments on the mortgage. I am now six months in arrears and the bank are beginning to take legal action aginst me. The house has been up for sale for over a year but structural problems are making it very difficult to sell. The original survey was also arranged by my father. he has refused to help in any way with the current situation and simply says because everything is in my name then it is my problem. Can i force him as guarantor to the mortage to help me?

-- sarah chambers (sarahchambers@hotmail.com), March 10, 2001

Answers

Sarah,

I am sorry to hear about your current situation. I would however discuss this in more detail with you father as if he did sign the mortgage as a guarantor then he is Jointy and Severally liable for any debt that arises from it. This means that the lender can the full amount from bot you and your father or either of you. If you are only earning 6000 a year and you father earns or has assets that are sinificantly more, then they will probably choose to persue him for the majority if not all of the debt arising. So although you cannot force your father to help you out it may well be in his interests to do so. The fact that he has refused to help in any way with the current situation and simply says because everything is in my name then it is my problem may serve to be a thron in his side for a number of years if he does not act now.

Hope that this helps to clarify the situation.

Tim

-- Tim Heath (tim_n_heath@hotmail.com), March 10, 2001.

Tim is right, your father as guarantor has no choice but pay and will be pursued to the fullest extent of the Law. Why did he arrange a mortgage for you when you did not earn enough to get credit for a tin of beans? The Lender (and a court) may view this as irresponsible and will force your father to honour his agreement. Would he be trying to force you into taking responsibility for your share perhaps? Either way you are both liable and as Tim says, you should try and sort your differences out and face the problem as it will haunt you both for years to come.

-- Too scared to say (iwasduped@yahoo.com), March 10, 2001.

Sarah, please can you email me or post your email address here please (just to double-check). I tried replying to you privately but have had the email returned. Thanks.

-- Michelle Rogers (michelle@easynet.co.uk), March 14, 2001.