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In a guarantor mortgage, a close family member or a parent takes on some of the risks of the mortgage 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 payments are not made by the borrower and if the borrower is unable to make a payment or if the borrower repays the loan with no issues.
There are many different reasons for giving guarantor loans as he can have a significant role in many different types of loan. There are some loans without a guarantor which means the loans are given to people with a poor credit history. If a person is leaving 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.
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