Often when applying for a loan or a mortgage it may be necessary to provide a guarantor that can increase the guarantees in favor of a bank and, consequently, make it more likely to obtain a loan.
A fundamental concept, though, is that not everyone can be a good guarantee, so much so that no more banks and lenders, in general, accept a guarantor. While some can greatly increase the chances of obtaining a personal loan, others will be completely indifferent.
Here are the characteristics that a good guarantor must-have.
Clean credit history
First of all, the guarantor must not be reported as a bad payer or protested. It is essential that his credit history is “immaculate”, in such a way as to be, in the eyes of the bank, as a person worthy of trust from a financial point of view.
Good disposable income
While employees are always welcome – especially if they work in large companies – self-employed workers are accepted with a little diffidence, as their income is considered more at risk (it is a bit the same which is why loans for self-employed workers are granted with greater difficulty than loans for employees ).
In this case, pensioners are in the middle category because they are considered more difficult to “attack” than employees.
As banks increasingly consider the worst situation, in order to be accepted as guarantor it is essential that the guarantor is able, with his income, to pay alone the installments of the loan or mortgage.
Have a good personal wealth
In addition to a good income, a guarantor is usually required to have good personal wealth. This is because capital is a fast way for banks to be able to repay loaned amounts if the principal debtor fails to do so.
For example, among those who show they have a good monthly income but do not have any assets, and those who have an average monthly income (but still sufficient to pay the loan or mortgage installments) but have an excellent wealth, the banks usually they prefer the second figure because the patrimony is something more appreciated (and easier to “attack”) than labor income.
Other guarantees already are given
The presence of income and assets, as we have seen, are fundamental. An important concept is that the same has not already been engaged in other sureties or guarantees in general.
For example, if a couple of parents lend their home as a guarantee for the mortgage of a child, the same house can hardly be valid as a guarantee for the mortgage of another child, this is because, as we said before, the bank considers always the worst possible scenario – that is that both mortgages are not repaid – and, in this case, it would find a guarantee to be shared with the bank of the other mortgage.
Age of the guarantor
Just like for the personal loan, which is usually granted up to 75 years of age at the time of payment of the last installment, the guarantor’s age is also taken into consideration (always at the time of payment of the last installment). Specifically, he must have a maximum age of no more than 75 or 80 years, depending on the bank at which he applies.