Mortgage guarantor: who can be and is he needed in 2021

What is a surety agreement

When applying for a loan for a large amount or to a borrower with a low credit rating or for some other reasons, banks often impose a condition on attracting a guarantor. In essence, a guarantee is an obligation of the guarantor to fulfill the loan obligations assumed by the borrower. Therefore, if the financial situation of the debtor worsens or he refuses to pay, all debts or part of them are transferred to the guarantor. Now he is obliged to repay the loan.

A surety agreement is concluded between the bank and the person who will assume such responsibility. If the loan amount is very large, such as with a mortgage, the bank may request not just one, but 2-3 guarantors. In this way, the lender reduces its risks. As a rule, if the principal debtor is in arrears, liability is not divided between the guarantors. The bank consistently appeals to each of them with a demand for full repayment of the debt. But if each guarantor was assigned a separate share, he will be responsible only for his obligations.

Regardless of how many guarantors were involved at the conclusion of the agreement, each of them bears joint and several liability on an equal basis with the borrower. This is stated in the Civil Code in Article 363. In this case, the lender has the right to demand payments from both the borrower and the guarantor at the same time. The obligations of both terminate only after the completion of loan payments. Sometimes it may happen that the guarantor completely closed the mortgage himself, while the borrower did not make a single payment.

If this situation occurs, the guarantor becomes the new lender for the borrower. The guarantor has the right to claim the entire amount that he contributed to the bank for the debtor. This is regulated in Article 365 of the Civil Code of the Russian Federation. In addition, the guarantor may demand that the borrower return other amounts spent on the loan - interest, fines, penalties that arose due to late repayment of the loan. If the guarantor does not want to fulfill the borrower’s obligations, he can go to court and demand that the debtor be forced to repay debts to the bank.

Requirements and conditions of banks for future co-borrowers and guarantors

+'The requirements and conditions imposed on both guarantors and co-borrowers are practically the same in all banks:

Your loan has been approved!

Citizenship of the Russian Federation.
The age range is 21-60 years, and the loan debt must be repaid before the retirement date.
A close relationship with the borrower is desirable.
Six months of work experience in the last place.
Availability of official earnings, and so that its amount corresponds to the size of the required loan payments, if such a need arises.
Permanent registration at the place of residence or a certificate of registration at the place of temporary residence.
Absence of criminal liability in the past and not being under investigation in the present.
Positive loan history.

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Can a pensioner be a co-borrower?

Sometimes pensioners want to act as co-borrowers. In these cases, banks use an individual approach. For the most part, the age limit plays a decisive role, and it will always be exceeded, since we are talking about long-term lending. Therefore, banks do not want to formalize relations with pensioners.

However, there are exceptions: a “young” pensioner or he has an appropriate income, and so on.

Difference between guarantor and co-borrower

Guarantors and co-borrowers are involved in almost all mortgage agreements. Sharing responsibility among several individuals allows the bank to reduce its risks. Sometimes the lender is ready to make concessions and reduces the interest rate on the loan if there are many responsible persons and they all meet the bank’s conditions. But there is still a difference between co-borrowers and guarantors:

The co-borrower is equal in rights and obligations to the borrower. The Bank does not differentiate between these persons based on their rights and responsibilities. For the credit institution, it does not matter which of them will repay the debt and to what extent. Most often, co-borrowers are spouses, parents or children of the main debtor for whom the mortgage is issued. If the debtor stops making payments according to the schedule on time, the bank automatically contacts both the borrower and the co-borrower to find out the reasons. They send him letters to email addresses, SMS or push notifications, or call him by phone.
The guarantor acts as a guarantor that the borrower will return the money lent to him by the bank. He is not obliged to monitor the fulfillment of obligations according to the schedule. If there is a delay of several days, no one bothers the guarantor. He is involved in the process when the debtor stops fulfilling his obligations and does not get in touch. As a result, the guarantor may become the main defendant on the loan. As a rule, the period for notifying the guarantor is specified in the guarantee agreement.

The contractual obligations of co-borrowers and guarantors in relation to the borrower also differ:

the co-borrower signs the main agreement along with the borrower;
The bank enters into a separate surety agreement with the guarantor, which he signs.

In addition, the co-borrower, at the same time as the borrower, signs an agreement on compulsory insurance of mortgage real estate. This is usually not required of the guarantor.

Another difference between a guarantor and a co-borrower is that he does not receive any rights to the main borrower’s property, which was purchased with a mortgage. Therefore, he has no financial benefits, only responsibility. However, the guarantor can sign a mutual agreement with the borrower, which states that the guarantor will become the owner of the home if he has to pay off the mortgage.

Debt collection procedure under a surety agreement

It should be noted right away that in judicial practice, the resolution of such disputes is considered a rather complex process, since collection under a guarantee agreement has certain specifics. Moreover, the person agreeing to such a service considers this a formal aspect, because he is completely confident that the debt will be repaid by the borrower.

Therefore, when he is asked to collect a debt from a guarantor, he begins to actively object, challenging both the very fact of this and the agreement. At the same time, in order to present demands to such a person, a number of certain conditions must be met:

existence of obligations;
the presence of a direct agreement (necessarily in writing and certified);
existence of debt;
appeal to the court within the terms of the contract.

If at least one of these conditions is absent, collection of the loan from the guarantor becomes impossible.

In judicial practice, there are processes where a person, having challenged the main obligation, evaded responsibility, including by observing the procedure for changing the interest rate on loans (more details on the issue at the link).

Guarantee – joint and several liability for a loan with the borrower. The easiest way to avoid collection under a surety agreement is to convince the borrower to make payments on time. In other cases, everything depends on the specifics of the agreement, the subject of lending, and other factors.

USEFUL: watch a video on the topic of court with a bank, write your question in the comments of the video and get advice from a lawyer

The collection procedure can take place at the stage of enforcement proceedings. To do this, a financial institution that wants to collect a debt requests the guarantor to fulfill the obligation under the contract. In case of refusal, it files a claim for recovery under the guarantee agreement. Those. If refused, you must go to court.

Note that debt collection under a surety agreement can be carried out both from the borrower and from his guarantor.

Preparing a claim. A prerequisite for filing a claim is to indicate a number of certain points, including:

date of origin of the debt obligation;
the date from which the obligation is not paid;
determination of the general statute of limitations for the protection of rights;
actions of the institution taken before the court execution.

Trial. During the trial, the guarantor has the same procedural rights as the main borrower, and, therefore, can make appropriate statements in defense of his rights such as:

On reducing the penalty due to its significant overstatement;
On the provision of witty fulfillment of an obligation. The court may postpone the fulfillment of the obligation for a certain period. For example, under the Mortgage Law, the right of participants in a mortgage agreement to grant a deferment is expressly enshrined in law. An application for a deferred payment on a loan can be submitted both during the consideration of the dispute and after a court decision is made.
On granting an installment plan for the execution of a court decision. Based on the specific circumstances of the case, the court may order payments to be made in specific amounts and according to a specific schedule.

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The decision and its execution. Based on the results of consideration of the statement of claim, the court will issue orders to collect from the main debtor and his guarantor the amount of debt obligations jointly and severally. Based on this decision, the court will issue a writ of execution, which will subsequently be presented to the bailiff service.

As part of enforcement actions, the bailiff will establish that both parties have an obligation of funds and will simply write off the debt from the one who has such funds. If the bank decides not to resort to government assistance and resolves the issue using illegal methods, a complaint should be prepared. You can find out where to complain about the bank by following the link.

In any case, it should be remembered that the procedure for collection under a surety agreement is a complex and specific process, so it will not be possible to do without the knowledge and experience of a specialist.

A standard loan must specify the terms of the guarantee. If there is no specific data, claims can be made within 1 year from the date of occurrence of obligations.

This point needs to be clarified before signing the documents. This will help resolve the issue of how to remove a loan guarantee as simply as possible - time has passed, there are no obligations. In some banks, this period corresponds to the entire lending period. This is the worst option when you have debt.

Options for ending the guarantee

Inconsistent terms of the surety agreement. When looking for ways to get rid of a guarantee, it is important to study the current contract and the initial document. If there are changes made to it without the knowledge of the guarantor (about interest and payment amounts), the obligations are terminated due to violation of legal norms. This must be proven in court proceedings. Banks are aware of this possibility, so it rarely arises.

In addition to not agreeing on the terms, there are two more options for the guarantor not to pay the loan:

death of the borrower. This is relevant if there is such a condition in the contract, otherwise the debt will pass to the heirs (if they have entered into an inheritance and its size exceeds the debt). Otherwise, the guarantor will have to pay;
the borrower was an enterprise that had gone through the liquidation process.

These circumstances make it possible to terminate the guarantee in court or by contacting the bank as part of a pre-trial settlement of the conflict.

If, nevertheless, the borrower evaded fulfilling his obligation, and all his debt obligations were collected from you, you have the right to make a recourse claim against such borrower. The procedure for submitting such demands is as follows:

Preparation of a statement of claim.
Litigation. Here the most important evidence will be the same guarantee agreement, as well as documents confirming the fulfillment of the obligations of the borrower - the guarantor.
Making a court decision and submitting it for enforcement. Since the debtor has already evaded fulfillment of the main obligation, it is unlikely that he will return the collected debt to you voluntarily.

In this connection, you have a huge amount of work ahead of you within the framework of enforcement proceedings, which may include:

preparation of various types of petitions to the bailiff to search for the debtor’s property;
imposing restrictions provided by law. For example, restrictions on the right to drive a vehicle or a ban on traveling abroad;
search and search for the property of the debtor's spouse. As is known as a general rule, all debts formed during marriage and family relations are common debts of the spouses. In this connection, in the presence of a positive judicial act, the debtor’s spouse also becomes a debtor.
bankruptcy. If a person deliberately concealed property, you have the right to apply to declare the debtor bankrupt. Such an appeal has a number of certain conditions for the debtor, however, if it is recognized as such, all dubious transactions will be challenged.

OJSC "Metcombank"

Statement of claim

Date, signature

Who will be approved as a guarantor for mortgage lending?

Most often, mortgage guarantors are taken by those who have not become co-borrowers. They could be:

parents;
brothers, sisters;
uncles, aunts, grandparents;
friends, acquaintances, neighbors or colleagues;
legal entities, for example employers.

One of the bank’s conditions for the guarantor, if it is an individual, is age compliance. As a rule, credit institutions set a range from 21 to 65 years. However, some banks may have different age limits, for example from 25 years to 75 years.

A separate requirement for the guarantor concerns citizenship. Without an internal Russian passport, a person will not be able to become a guarantor for a mortgage loan. Some banks impose restrictions on the place of permanent registration. For example, a guarantor can be registered only in the region where bank branches are present, while for others, permanent registration in any locality of the Russian Federation is sufficient.

The creditor bank will definitely check the solvency and credit history of the guarantor. Citizens with incomes less than that of the main borrower and with a more dubious credit history will not be able to act as guarantors.

In a number of cases, the joint and several liability of the guarantor can be replaced by subsidiary – additional liability. Or it may be limited by the amount or percentage of debt. All these conditions must be specified in the surety agreement. However, banks rarely practice such options.

Who can be a guarantor for a mortgage?

Borrowers are already accustomed to the fact that banks put forward quite strict requirements for their candidacies. But the selection process for the role of guarantor of a banking transaction is no less stringent. An ideal guarantor of credit relations between a bank and a borrower can be a citizen who meets the following criteria:

Age. The minimum value is set at the border of 21 years, the maximum is the age of old-age retirement (65 for men, 55 for women). Some banks, such as Sberbank, are expanding the age limits, increasing the maximum age to 75 years.
Citizenship. Only a Russian citizen who has permanent registration in the country, in the region where the selected bank operates, can become a guarantor for a loan (consumer, mortgage, etc.).
Income. You must have an official place of work or other permanent income, supported by documents (pension, rent, bank deposits, etc.).
Credit history. Obviously, a citizen with arrears, outstanding debts and litigation cannot be a guarantor of a banking transaction.

Not only a relative, but also just an acquaintance of the borrower can become a guarantor for a mortgage.

Important! In some cases, for the guarantor, these requirements (age, income, credit history, etc.) are not taken into account by the bank’s decision. You should check this with your mortgage specialist.

In what situations can you not do without a guarantor?

Without a guarantor, it is most difficult for a potential borrower to obtain a mortgage under the following circumstances:

young age, for example up to 21 years, which is set by the creditor bank;
pre-retirement age, which is close to the upper threshold approved by the bank;
small arrears in the credit history of the main borrower;
insufficient overall work experience or last job;
purchasing housing in a new building for the period of construction and before registering the property as collateral with the bank.

If a potential borrower does not have sufficient income to obtain a mortgage, he will need co-borrowers. The high solvency of the guarantor will not play a significant role. It is necessary only in case the main debtor stops making payments, so the bank does not rely on the guarantor’s income. If the co-borrowers also do not have enough income to obtain a mortgage, the bank will not approve the requested amount. However, a guarantee will play a significant role if the credit history of the main borrower has been damaged by minor flaws.

At the same time, many Russian banks issue mortgages without involving guarantors. As a rule, the issue of guarantee arises if the borrower does not meet all the bank’s conditions.

What happens to the guarantor if the main debtor goes bankrupt?

If the main debtor for any reason ceases to fulfill his financial obligations, the creditor has the right to demand that the guarantor fulfill them. Exhaustive comments on this matter were given by the Supreme Arbitration Court of the Russian Federation in Plenum No. 42. Their essence is as follows: even if the borrower dies, this will not relieve the guarantor from the need to repay his debts.

Despite the fact that the Plenum was published in 2012, that is, before the Bankruptcy Law came into force in 2015, the essence of the comments has not changed. If the main debtor declares his insolvency, his debt will definitely pass to the guarantor.

If the guarantor under a loan agreement is not ready to pay off someone else’s debts or does not have sufficient funds, the only option left is bankruptcy.

Liability of the guarantor to the creditor

Before agreeing to a guarantee, you should study in advance all the terms of the mortgage and the risks associated with such an obligation. The guarantor will have to:

act as a guarantor for the repayment of the debt by the main borrower or fulfill his obligations if he stops making mortgage payments;
repay not only the principal amount of the debt, but also interest and fines that will arise in case of delay if the borrower does not pay them;
present all documents upon request of the bank - income certificate, passport, copy of the work book;
notify the bank about changes in any of your data, for example, a change of surname or place of residence.

In addition to obligations, the guarantor has rights. He can:

Refuse mortgage payments for the borrower in court. However, if the debtor does not have property commensurate with the debt, the guarantor will still have to repay the loan instead of the borrower.
Go to court to collect from the debtor all payments that were made to the bank for the borrower.
Become a full-fledged creditor for the borrower, for whom the mortgage has been fully paid and the debt to the bank has been repaid.

Before concluding a guarantee agreement, the future guarantor has the right to:

obtain information about the income and property of a potential borrower;
find out the presence of hidden facts that may become an obstacle for the debtor in fulfilling his obligations to the bank;
count on the legal purity of the transaction and involve your lawyer to clarify all the hidden nuances.

In order not to become a hostage to someone else’s irresponsibility or life circumstances, it is advisable to study all the obligations and rights before concluding a surety agreement.

If the guarantor promptly fulfills all the bank’s requirements to pay the debt, his credit history will not be damaged. The period must be specified in the guarantee agreement. But if the guarantor begins to make delays, this will ruin his credit rating.

Guarantee: what is it, why do banks need it?

A guarantee is not just a formality observed when applying for a mortgage loan, but a guarantee for the bank that reduces its financial risk.

The rights and obligations of guarantors are the same as those of the borrower. By signing the agreement, the guarantor guarantees, that is, assumes financial responsibility for the actions of the borrower. Sometimes the guarantor has to pay the mortgage himself.

The most common force majeure events:

disappearance of the borrower and, as a consequence, termination of monthly payments to the bank;
loss of source of income, ability to work by the borrower;
death/death of a bank client.

Guaranteeing is a very responsible step; Before vouching for anyone, weigh your financial capabilities and the reliability of the borrower. First of all, answer the question for yourself: are you ready to give your money for another person?

The guarantor, just like the borrower, has not only obligations, but also rights. In some cases, you can save or at least partially get your money back.

The guarantor has the right:

Require the bank to provide all mortgage documents. The lender is required to do this if the guarantor has repaid the entire amount of the mortgage loan.
Challenge the bank’s decision, regardless of whether the borrower himself agreed with it or not.
Demand that the borrower cover all costs, including legal costs, if part of the debt has been paid.

The liability of the guarantor may be joint or subsidiary . In the latter case, the guarantor has little protection. He will be obliged to pay the mortgage loan only after the bank proves in court that the borrower is incapacitated. If the borrower has disappeared, then this will be impossible to do.

Joint and several liability implies an equal degree of responsibility of the borrower and the guarantor. By signing the agreement, the guarantor risks taking on all the costs: payment of mortgage payments, fines and penalties for late payments, payment of interest for using the loan, compensation to the bank for the costs of legal proceedings.

In addition, the guarantor risks the loss of his property, which may become the property of the creditor due to late payment of the debt and the borrower’s lack of property (with the exception of real estate that is the only home for a person).

Late payments will affect the credit history of both the borrower and all his guarantors. If the guarantor wants to take out a loan in the future, the bank may refuse or give him much less than the desired amount, since an adjustment will be made to the mortgage for which the client has guaranteed.

It is theoretically possible to relieve yourself of responsibility for a guarantee, but in practice it is much more difficult to do . To do this, it is necessary to obtain consent from the borrower and the bank. The guarantee terminates even after the death of the debtor or after the divorce of the spouses (if one of them is the borrower and the other is the guarantor).

Will the guarantor be able to get a mortgage or loan?

Mortgage is long-term lending. Over the course of 10-20 years, circumstances may change for both the main borrower and his guarantor. For example, a guarantor will want to take out a mortgage or a car loan. Not all guarantors clearly understand what the guarantee entails.

According to the law, the guarantor can submit an application to the bank for a mortgage, consumer loan or credit card. The borrower's obligations are not visible in his credit history. But this situation will persist only until the main borrower regularly fulfills its obligations to the creditor bank. If there is a delay, which is provided for in the guarantee agreement, all responsibilities will pass to the guarantor. In this case, he will have to pay for both loans - his own and the one for which he acted as a guarantor.

Not everyone will be able to bear such a financial burden. Therefore, it is better to find out in advance all the details and the expected load on the mortgage where the guarantee was issued. It would also be a good idea to control payments on someone else’s loan. Some banks allow guarantors to track payments. If such a function is not provided, you will have to rely on the integrity of the mortgage borrower, or not take on the responsibilities of a guarantor.

If payment obligations under the guarantee have already arisen, this will be visible in the guarantor's credit history. In this case, the bank will consider them as “its own”; debts. Therefore, a potential borrower may not be approved for an application for a larger amount, or he may be offered less attractive lending conditions.

Do I need a guarantor for a mortgage?

A mortgage without a guarantor secured by purchased or own housing is the most common at the moment. A guarantee is rather a deviation from the norm and, as a rule, it is associated with the presence of some problems with the borrower and is aimed at finally approving the mortgage application.

A guarantor for a mortgage is needed only in extreme cases and increases the chance of approval of the application. An exception is a mortgage in a new building. A number of construction projects are accredited by the bank on the condition that there will be a mandatory guarantee for the construction period.

A mortgage without certificates and guarantors secured by the purchased housing is discussed in detail in a separate post.

Guarantor insurance for mortgage lending

When applying for a mortgage, the borrower is required to pay for insurance of the property purchased with a mortgage. In addition, banks offer to insure other risks. The most common voluntary insurance options:

from loss of title rights to property;
life and health of the borrower.

They may also offer to insure against job loss or financial risks that will prevent the borrower from meeting mortgage obligations. In this case, the guarantor does not participate in the insurance process. He does not have to pay for insurance or take out an insurance policy for himself.

Do you need a guarantor for a mortgage with Sberbank?

Any credit organization, including Sberbank, cannot risk its funds, so it puts forward requirements that will guarantee the repayment of the loan.

One of the main ways to ensure a guarantee for a mortgage is the registration of the borrower's property as collateral to the bank and a guarantee.

Involving a third party as a guarantor confirms the seriousness of the borrower's intentions regarding repayment of the loan. If for some reason the borrower becomes insolvent, the burden of financial responsibility will fall on the guarantor, who will have to repay the mortgage loan to Sberbank instead of the debtor client.

So do you need a guarantor for a mortgage with Sberbank? The answer to this question depends on the conditions under which the borrower wishes to take out a loan, as well as on the extent to which he himself meets the requirements put forward by Sberbank. The presence of guarantors increases the likelihood of a mortgage loan being approved by Sberbank employees.

How to remove your mortgage guarantee

It will not be possible to terminate the function of a mortgage guarantor on the initiative of the guarantor himself. The legislation limits the right of the guarantor to unilaterally refuse obligations.

How to terminate a surety agreement →

The guarantee for mortgage lending is terminated in whole or in part in several cases:

Upon full repayment of the debt.
Upon expiration of the guarantee agreement.
If the creditor assigned the right to the borrower's debt without the consent of the guarantor. For example, transferring debt to collectors.
If the terms of the loan are changed without the consent of the guarantor. For example, when the interest rate increases or the loan term extends. In this case, the guarantor is liable under the contract on the original terms.
In the case when the borrower attracts another guarantor with an equal or higher level of solvency. This will require the consent of all parties - the original guarantor, the borrower and the bank.

The guarantee agreement is not terminated if:

the borrower died;
the legal entity was reorganized.

All rules for terminating a guarantee are prescribed in Article 367 of the Civil Code of the Russian Federation.

useful links

Civil Code of the Russian Federation Article 363. Liability of the guarantor.
Civil Code of the Russian Federation Article 365. Rights of the guarantor who has fulfilled the obligation.
Civil Code of the Russian Federation Article 367. Termination of guarantee.

about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Legal nature of surety

A guarantee is a common way to secure your loan obligations from an additional source. Banks are willing to use it and even reduce the interest rate. For borrowers with no credit history, this is often the only chance to get a loan.

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Author of the article: Klavdiya Treskova

Consultant, author Popovich Anna

Financial author Olga Pikhotskaya

How to get a mortgage from Sberbank without a guarantor?

You can get a mortgage at Sberbank without involving third parties, but banks compensate for additional risks with inflated mortgage requirements.

Disadvantages of a mortgage without guarantors:

increased percentage;
provision of one's own property as collateral;
extended insurance;
reduction of the contract term and loan amount;
more stringent requirements for the age and solvency of the borrower.

Without the involvement of a guarantor, the terms of a mortgage loan become less attractive, and the requirements for the borrower become more stringent . But many mortgage loan applicants agree to these conditions, since it is quite difficult to find a person willing to bear financial responsibility for another person.

In some cases, Sberbank refuses to issue a mortgage loan to a client without a guarantee. The most common reasons for refusal:

young/conscription age of the applicant;
low income;
buying an apartment in a building under construction.

Sberbank will necessarily require the involvement of a mortgage guarantor only in one case - for the period of construction of the property. If you take out a mortgage for a new building or house construction, then you must provide a guarantor for the construction period. After the purchased property is pledged to Sberbank, the guarantee is removed.

For all other mortgage programs where you can do without a guarantee, Sberbank will offer to find a co-borrower or will refuse the applicant.

If you purchase a new building accredited by Sberbank under a program without guarantors, then a third party for the mortgage is not required. This point needs to be clarified with the credit manager of Sberbank or the developer.

Thus, to obtain a mortgage loan from Sberbank on attractive terms, it is best to attract a guarantor . However, both the borrower and the guarantor should take their responsibilities with all responsibility and seriousness.

Mortgage loan guarantee: basic concepts

A guarantor is a person who undertakes to fulfill the loan obligations to the bank if the borrower himself, for some reason, cannot repay the debt. He may be assigned obligations, either in full or in part. The relationship between the guarantor and the financial institution is governed by the guarantee agreement.

Important! The borrower and the guarantor bear joint liability under the loan agreement (Clause 1 of Article 363 of the Civil Code of the Russian Federation (Civil Code of the Russian Federation)).

Legislation states that if the person who took out the mortgage does not make the payments established by the agreement, the bank has the right to demand payment of the loan, both from the borrower himself and from the guarantors (Article 323 of the Civil Code of the Russian Federation). Payment obligations are retained by them until the debt to the bank is fully repaid. We talked in more detail about what will happen if you don’t pay your mortgage in this material, and you can find out how the issue of payments in the event of bankruptcy of an individual is resolved here.

The legislation does not establish the share of obligations to be fulfilled by the guarantor and the borrower. Therefore, it is possible that the guarantor will pay a larger portion of the loan than the borrower himself. But the legislation gives the guarantor the right to demand from the borrower reimbursement of all expenses associated with the payment of the debt (Article 365 of the Civil Code of the Russian Federation).

Questions and answers

Thanks to the basic information, you can get a general understanding of the guarantee in mortgage lending. However, there are a number of nuances that should be dealt with before you issue a guarantee.

Who can be a guarantor for a mortgage?

Most banks have standard requirements for both the borrowers themselves and third parties who are involved in the mortgage agreement. The list of main characteristics that guarantors must meet:

Russian citizenship - the client must have a valid passport;
permanent registration (the guarantor must be registered in the country);
the minimum age is 21 years, the maximum can reach 75 or 85 years (depending on what features the mortgage program has and what requirements the lender puts forward);
availability of regular income - it can be confirmed by a certificate of form 2-NDFL, a tax return or a document in the form of a bank;
official employment - it is confirmed in several ways (work book or contract).

What documents are needed?

To act as a guarantor for a mortgage, you must provide a package of documents to the bank. Most often, this list coincides with the list of papers that the borrower must provide:

passport of a citizen of the Russian Federation, which has a permanent registration stamp (you can also attach a certificate of registration);
application (the form is offered at bank branches);
military ID (it can be replaced by a certificate of exemption from service);
if you have children from 0 to 14 years old, you must provide their birth certificates;
marriage contract, if any;
work book (a copy of it is also required);
SNILS;
marriage certificate (or divorce certificate);
in the event of the death of a spouse, a certificate confirming this fact is presented;
certificate of education or diploma;
a document confirming the assignment of a TIN;
income certificate in any convenient form.

Sometimes the lender may request additional documents. A complete list of documents can be obtained from the bank branch where the mortgage will be issued.

Is it possible to terminate a mortgage guarantee?

Some people acting as guarantors wonder whether it is possible to relieve themselves of these obligations (including when the guarantee period expires). All these conditions are specified in Art. 367 Civil Code of Russia:

Full early repayment of the loan.
Changes in any loan terms that were made without prior approval from the guarantor.
Expiration of the guarantee agreement.
Transfer of principal to another borrower. The guarantor may refuse to sign the agreement if he does not agree to guarantee for the new debtor.

Important! The death of the main borrower is not a reason for the cancellation of financial obligations under the loan. If relatives voluntarily refuse the inheritance, the mortgage also passes to the guarantor.

In some cases, the role of guarantor can be refused for other reasons. However, in order to remove your obligations, you need to send a written statement to the bank; all interested parties to the transaction (borrower and lender) must agree with it.

Is it possible to replace the guarantor?

A replacement of a guarantor can occur for several reasons:

At the request of the guarantor himself.
When transferring the principal debt to another borrower.