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Scottish Trust Deed Forum
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Topic starter
16/05/2011 6:02 pm
Hi,
A friend is applying for a loan which requires a guarantor and has asked if I will be his guarantor.
Am I allowed to do this while I have a trust deed?
Thanks.
16/05/2011 6:48 pm
Hello LauraR.
I'm not sure that there's anything to stop you acting as guarantor for your friend. One of the experts will be able to confirm this soon I hope.
It may however cause you a problem if your friend defaults on the debts and the lender comes looking to you for payment.
The lender may well also seek to qualify you as a guarantor by running credit checks on you. If they do this your trust deed is likely to show up and may affect the likelihood of your friend getting the credit that he wants.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
17/05/2011 7:16 am
What trust deed assistant says is exactly right - there is no reason you can't other than the lender may not view you as acceptable given your credit rating. May be a good excuse to bodyswerve this request?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
17/05/2011 9:17 am
I don't mean to put a damper on the proceeding but wouldn't it be crazy to take this on?
Imagine the scenario where your friend defaults on the loan making you liable to pay. Not only would you need to pay the loan, your trust deed would fail if you got into a situation where you couldn't afford to pay it either.
Nightmare city!
