Change of financial circumstances of Guarantor, what happens?

Wincey (12 mths ago)

Hi, I am a guarantor on an existing loan but I am being made redundant so my income is drastically changing. If the person I'm on the loan for decides not to pay I will no longer be able to meet the financial requirements to pay back this loan as I will have to find money for my mortgage etc. What, if anything can I do? Can he get someone else to replace me as garantor?

FLM Loans (7 mths ago)

Hi there,

 

This is why FLM always complete the checks at the beginning of the loan to make sure you would be able to keep to your part of the agreement. We always ask that you stand guarantor for someone you trust, and who trusts you so this eliminates any worry for if troubles like this arise.

 

If you're unable to make a payment you need to stay in contact with us to let us know, and also work with the other person on the loan to make ensure the payments are still made in full and on time. Once you're guarantor on an FLM loan, you cannot get someone else to replace you as you signed an agreement to say you will support their loan for the full term.

 

Thanks


Tags: cannot pay, can't pay, financial difficulties, financial difficulty, guarantor redundant, lose job, lost job, no job, no money, redundancy, retired, sacked