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do it...whats the worst that can happen???
oh wait.....
ps...your MIL sounds horrendous.
pps...grow a set and get her told.
Dude, he's boning your sister!!!
All he's due is a knuckle sandwich.
You knew the answer before you typed on here.
Politely, swallow the man pill and say NO!
Dude, he's boning your sister!!!All he's due is a knuckle sandwich.
Nope, BIL is his wife's brother. Although perhaps the OP also has a sister who the BIL is also boffing, but that sounds like an unlikely coincidence 😀
Cheers, Rich
I'm not about to let the facts get in the way, here
Practically, if you have your own mortgage you probably won't pass muster as a guarantor anyway. The banks look at all your income and outgoings and take a view on whether you could stump up in the event of a default. If you are just about managing, then they will probably decline you. It's a load of work, like applying for a loan yourself. Once agreed to do it for someone but it turns out I am not rich enough.
Practically, if you have your own mortgage you probably won't pass muster as a guarantor anyway. The banks look at all your income and outgoings and take a view on whether you could stump up in the event of a default. If you are just about managing, then they will probably decline you. It's a load of work, like applying for a loan yourself. Once agreed to do it for someone but it turns out I am not rich enough.
Sounds like potentially the best way out of it so far. Make some enquiries with a couple of lenders about your eligibility to be a guarantor, and whether the existing loan on your property would rule you out.
Could make you into the good, sensitive husband who just trying to help, but is rebuffed by those nasty banks...and lead into an enjoyable chat about whether his mortgage-free folks are in a better position to act as guarantors...
OP are you Indian? 😀
go on then hora, get yourself out of this one ! 😐
Offer to be guarantor or, as you say, you'll always be the bad guy when there's an argument.
When and if you get accepted, tell the Brother in law that you need a legal document from him saying that if the guarantee gets called in, the house (or a reasonable part of it) is yours.
An unfortunate set of events could see you living in a cardboard box with cheap cider as your only friend, DON'T DO IT.
Practically, if you have your own mortgage you probably won't pass muster as a guarantor anyway.
They still might accept as having two people to chase for the debt is better than one eg he could get himself declared bankrupt and then they just come after you and your house.
I still think there's a fundamental problem here.
The OP's MIL and wife both think that the bank are going to want proof of income from a guarantor.
It's [b]assets[/b] they'll be looking for if the brother in law can't pay his mortgage, not to find out that the OP lost his job some time ago and his wife's a student.
The MIL can put her home on the line if she wants to and let it all sail through.
am I in a locked box? 😐get yourself out
Indian in laws, married to daughter.. do as I say!
When and if you get accepted, tell the Brother in law that you need a legal document from him saying that if the guarantee gets called in, the house (or a reasonable part of it) is yours.
I think you'll find that the building society own the house until the whole mortgage is cleared....
So your Mrs' parents are dicks, with a history of being workshy, WTF makes you think he'll be any different?
Should you guarantee the mortgage of the progeny of workshy dicks, f_ck no.
Let the parents cover it, their kid, their risk, you sound soft in the head....
footflaps - Member
I refused to lend a mutual friend £7k (to help out with unpaid debts)before he was about to end up on the street (though I did offer he could stay at mine if that did happen). The chap who asked me, my best friend of 20 years, has never spoken to me since I said no
Fixed it for my circumstances about 17yrs ago.
Hora stated you know his true colours.. Indeed, indeed I did and whilst it hurt me afterwards, it bothers me a little now and again.
He was a bit of a tit though. 😆
I really wouldn't
The first three words of the first reply were the correct ones.
Put some meat on the bone, fella; how much is the bank willing to lend him and how much does he "need" to borrow?
no****chance
I think the bank has offered him 63k and the houses he's been looking at are just over 100k. His parents have given him 17k I think but not exactly sure on the figures.
He's been living at home for the past 2 years so not sure how much he'll have saved up. But the month long trip to America last year won't have helped. Wish I could afford to go on a month long trip somewhere.
I'm getting a bit bitchy now though. It's not his fault his aspirations are set higher than his means and I sympathise with his situation.
I was fortunate enough to get a similar loan for a deposit from my parents when I bought my first flat and with that I bought a flat that was within my budget. My parents guaranteed the mortgage for 2 years when I was a student but the mortgage was was based on what I would earn on my first year out of uni ie. sweet f' all. It did me know harm living in a 1 bed ex council flat, to be honest I felt really lucky to.
As a matter of fact I think he'd feel the same way. He's just got his first career focused job and wants to be more independent which is totally understandable. I'm pretty sure he'd agree that his independence needn't involve me guaranteeing his mortgage.
Location?
There must be plenty of flats available for £80k out with London*
*based on what my sister-in-law bought her flat in Sheffield for, somewhen.
Tell your wife you do not like your job anymore and you would like to have a baby (her doing the birth giving obviously) so you can be a stay at home dad/house husband and if she can get a job earning enough money to support your family plus pay her brothers mortgage she is more than welcome to become his guarantor.
No. Tell him to buy a cheaper property.
Has he looked at other options than just his bank? A financial adviser may be able to find him a mortgage that suits his needs - my bank wouldn't lend me enough to get the house we wanted, a financial adviser found several lenders that would lend us [b]significantly[/b] more than we wanted.
[quote=whereisthurso a dit]It's not his fault his aspirations are set higher than his means
Yes, it is. He needs to realise this, and quickly.
Yeah if that's his attitude he'll be driving a Merc before long and then where will you be?!
Is there any risk here that the OP's wife could just go ahead and provide the gaurantee herself? I am assuming the OPs house/mortgage is in both their names, so if it is collateral the BIL's bank are looking for, then do they need both the OP's and his wife's signature or just the one signature?
Just a thought?
Oh, and to answer the question I would be waiting until the wife is out and then changing the locks if she is in anyway serious about this.
if the OP is ineligible due to him being a mortgage payer, then mrsOP can't either, they'll link it all through credit ratings
the BiL needs to get on the ladder with something cheap and then when the next market crash happens (which will be soon!!!!) he can raid the market with a chunk of payments to boost his creditworthiness and stretch his buying limit
No.
Champagne taste on a beer budget?
If the bank's only willing to lend him 63k then his wage is less than 16kpa I assume. Not a whole heap, but if he's living with Ma and Pa then there's nothing stopping him from saving almost every single penny. Buy him a set of earplugs to drown out the in-laws noises and wish him well.
If you've not got kids, do one. She sounds barking.
No.
No
No way. As said before the bank is more likely to want a guarantor that has an asset to pin the mortgage against so his parents would be ideal if they are that into it.
In a similar situation i recommended to a friend that he just went back and said the Bank would not do it as that is hard to qualify from their perspective so even though you haven't checked and are in fact lying it at least deflects it. If your wife is happy for you to lose your house or have an escalating uncontrollable debt then I would be asking myself some very hard questions.
Bloody hell..... never seen so much vigorous agreement from STW!
I really sympathize - you've been put between a rock and a hard place.
However, the lesser of the two evils here (by quite a long way) is upsetting your wife/MIL. No offence, but it sounds like it will happen at some point in the future anyway - this seems as good a time as any to make a stand.
My advice is that you don't allow yourself get drawn-in to all the various facets of this situation.... don't end up having an argument about your BILs spending habits, or what a nightmare your MIL is, or what house he wants to buy etc etc.
Just answer the question "will you be my guarantor" - then back away, go to the shed and stay there until its all sorted out.
I would suggest: 'I'd really love to help you out, but with the wife giving up work for the next few years to retrain, an the instability in my sector, we are really not in a position to at the moment. Sorry about that".
Any attempts to cajole should be met with: "I'm really sorry, but as I've said, we just can't at the moment", followed by: "I'm just off to the shed".
obviously NOOOOOO, but OP - not trying to be out of order here but does your wife actually realise what 'guaranteeing his mortgage' means to you and her and your future borrowing ability?
especially if you are about to become the sole income earner supporting your family/mortgage - does she realise this? and what could happen to your family situation if something happened to your BIL?
why has she come to this conclusion? is she a mortgage or financial advisor? has she thought of everything? no, then how is this a properly considered and thought out proposal? its not, its a family one
consider other options - loans, saving more, alternative mortgage advice, shared ownership properties
Another possible option for avoiding confrontation over this:
How about saying (this is true as far as I can make out) that you're not entirely sure of how it would work, what the risks etc. are, so would want to discuss it with an IFA first to get some impartial advice on whether it's possible / sensible. You could go, with your wife if necessary, and be told by someone qualified that it's patently daft.
Essentially the same as asking on here, but you'd be asking someone qualified, and in full view of your wife.
Course, there's a slight risk of it backfirig, but that seems unlikely.
The important thing about a guarantee is not just if things go wrong for your b-in-law. Banks are bastards and they'll go for the person with the mosts assets first if there is a problem - can you guess who that is?
What happens if some financial disaster hits you, or you wish to upgrade your home?
The banks usually include any guarantees as part of your liabilities (or at least they did in Oz).
I was approached to do the same for my sister and b-in-law many years ago. The bank wouldn't limit the extent of the guarantee (I was prepared to guarantee the shortfall in equity), so basically I would have been up for the whole thing forever.
Instead I gave them cash to the extent of a years repayments, pay me back when you can job. That was 30 years ago, still haven't seen a cent. 🙂
Edit: oh, and they kept "releasing equity" in their home to buy 4wds and the like...
He's been living at home for the past 2 years so not sure how much he'll have saved up. But the month long trip to America last year won't have helped. Wish I could afford to go on a month long trip somewhere.
And there is where any sympathy for him falls by the wayside...
Just tell him to stay at home another year and stoping throwing money at expensive holidays if he 'really' wants a place of his own.