Finance and Guarantees

In these financially challenging times we are seeing some new trends in regard to loans, and also the re-emergence of some age-old problems.

  • The Banks and other financial institutions have become more conservative in regard to the conditions they impose on loans, including requiring family members (often parents) to guarantee loans being made by others.This can have devastating effects if the original borrowers default on the loan. The parents, who are moving towards retirement, can then find that their home is in danger or that they are saddled with a mortgage that means they cannot retire. The borrowers may default for many reasons, some of which were not predictable, for instance if one of them is injured and loses their job.
  • We now regularly see older clients, nearing or in retirement, who use their houses to obtain loans, under an arrangement by which no payments have to be made until the borrowers have all died or the home is sold. The paperwork involved in these transactions can be very challenging even when the loan itself appears simple.
  • If you are looking to borrow but do not know where to start looking, we may be able to help you find an appropriate financier.

The cost of obtaining good legal help will be small compared with the amount of money being borrowed and the certainty of mind that our help will give you.