If you are looking to get a mortgage with a guarantor then we can help.
What is a guarantor mortgage?
It is a mortage that you take out with the help of a guarantor. The guarantor agrees to pay the mortgage repayments in the event the mortgage applicant is unable to.
Will a guarantor mortgage help if I have been refused a mortgage on my own?
Yes possibly. Having a guarantor provides the mortgage lender will additonal security against the mortgage. If for example your income is low and falls below the lenders requirements then having a guarantor to help 'boost' the income requirements mean you can get the mortgage you require that ordinarily you wouldnt be able to get alone.
Who can be a guarantor?
A guarantor tends to be a parent but could be another close relative, grandparent or a friend. A mortgage lender will use the income and any debt from the guarantor as part of the application.
If I use a guarantor will they be registered as the owner?
No. They will not go on the property deeds or listed as an owner.
What happens If I cant afford the mortgage repayments or I lose my job?
If you are unable to meet the mortgage repayments then the guarantor will be contractually obliged to meet payments if the original borrower falls behind, dependent on individual lenders this may been some form of charge will be taken on their assets, for example their home, to make sure the lender can force them to pay.
How do I know what lenders will consider a guarantor?
It would be advised to speak with a mortgage broker who can discuss and advise you on what options are available. They will be able to also present you with a range of lenders who are happy to accept guarantors.
What is a family deposit mortgage?
This is whereby the lender allows a family member to part fund the deposit payment for your home. For example you may provide a 5% contribution and the family member provides the remaining 20% to help you meet the deposit requirements.
Are guarantor mortgages open to first time buyers?
Yes. Lenders understand that for first time buyers getting on the property market and saving for a large deposit can be difficult. This is why a guarantor mortgage can be very useful for a first time home buyer.
How much will I be able to borrow?
We would advise you speak with a mortgage broker who will have the experience to assess your needs and help you find how much you can borrow.