guarantor

A guarantor is someone who acts on your behalf to guarantee that a payment will be made.

For instance if you take out a type of mortgage called a guarantor mortgage this is where someone else guarantees your mortgage will be paid (usually because if you don't pay it off their assets will be used to pay off the loan).

Sometimes a guarantee is referred to as a surety. The bad thing about being a guarantor is that if the person who has been lent the money defaults, then you are liable.

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