Will this be secured against the guarantor's home?
The loan is not secured against the guarantor’s home. However, if the monthly payments are not being met and the account was to remain in arrears with no arrangement in place with the borrower or guarantor, there is the possibility of court action being taken and a CCJ awarded.
We would never force a customer to sell their home, but if a CCJ is not adhered to, then we can request a Charging Order on any property owned by the borrower or guarantor. This means that if a customer wants to sell or re-mortgage their house, the amount owed to us will be paid out of the proceeds.
This is only ever a last resort if the loan has not been paid back. We would always do what we could to work with the borrower and guarantor to try and resolve the arrears to avoid this action.