Contents of the guarantee
What should be in a guarantee?
The guarantee will be provided by the lender and must be in writing. It must be signed by the guarantor.
A guarantee should generally include:
- the amount of money the guarantor is responsible for
- the circumstances in which the guarantor might have to pay – for example, if the borrower misses their payments, and
- how long the guarantor’s obligation will last for – for example, until the borrower repays the loan in full.