What is a guarantor ?

In a guarantor mortgage, a close family member or a parent takes on some of the mortgage risks by acting as a guarantor. The person assumes liability on behalf of another person for credit. 

He is the person who takes responsibility for repayment in case the borrower does not make the payments and if the borrower is unable to make a payment, or if the borrower repays the loan with no issues.

There are many reasons for giving guarantor loans, as he can have a significant role in many different types of loans. However, some loans are without a guarantor, which means the loans are given to people with a poor credit history. 

If a person leaves home for the first time, you might be asked to provide a guarantor. Landlords need to ensure they will get the rent, and as some renters, like students, often change properties, the guarantor may be required to add security to the deal.