Guarantor Loan

A bank cannot reasonably continue to rely on a personal guarantee after the guarantor has given proper written notice of cancellation and the borrower's circumstances have materially changed, particularly when no debt was owed at the time o

A lender must properly assess applicant eligibility against its defined lending criteria before providing information about mortgage suitability, rather than giving misleading indications of approval based on incomplete information.

A lender must carry out reasonable and proportionate affordability checks before lending, including verifying income and expenditure declarations rather than relying solely on applicant statements.

Lenders must carry out reasonable and proportionate affordability assessments that are borrower-focused and consider whether repayments can be sustained without causing difficulties or adverse consequences.

A guarantor remains liable for the full debt including interest and charges even where the lender's communication has been poor, unless that poor communication caused demonstrable financial loss.

Lenders must carry out a reasonable and proportionate affordability assessment that is borrower-focused, considering both sustainability of repayment and impact on the consumer's financial situation.

A lender must carry out proportionate affordability checks including credit history verification and expenditure validation, particularly where red flags suggest borrower vulnerability.