Banks have ‘no option’ but to call in parents’ mortgage guarantees

THE Irish Banking Federation (IBF) said some banks have “no option” but to call in mortgage guarantees from parents on their children’s mortgages.

It is estimated that up to 12,500 parents agreed to act as guarantor for their children’s mortgages, meaning they could be forced to pay for their children’s mortgages should they fall into difficulty.

An IBF spokeswoman said there were many instances in which parents have acted as guarantor for a mortgage.