Guarantor Mortgage

A guarantor mortgage is a home loan where a parent or close family member takes on some of the risk of the mortgage by acting as a guarantor. This usually involves them offering their home or savings as security against the loan, and agreeing to cover the mortgage payments if the homeowner defaults. A guarantor mortgage can help you get a mortgage or allow you to borrow more.

Friends Capital can help you find the best guarantor mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:

Save you money on your mortgage deal
Offer a free consultation
Offer unbiased financial advice
Save you time in your mortgage application
Give you a dedicated account manager who is available to you through the process

Who Are Guarantor Mortgages Suitable For?

A guarantor mortgage could be suitable if you’re looking to buy a property with:

A Low Income: lenders will decide how much to lend you based on your income, so having a guarantor may enable you to get a bigger loan.

A Small or No Deposit: you could potentially borrow up to 100% of a property’s value with a guarantor mortgage.

A Bad Credit Score: having a guarantor might make a lender more inclined to offer you a loan. Little or no credit history: for example, if you’ve never had a credit card.

We can give you more in-depth advice on whether a guarantor mortgage is suitable for your situation.

Who Can Be A Mortgage Guarantor?

The mortgage lender will usually require the guarantor to be a parent or in some cases a grandparent.  
Your guarantor will need to have:

Savings or Property: Lenders will either hold some of your guarantor’s savings in a locked account or take legal charge over a portion of their property to secure the mortgage.
A Good Credit History: so lenders can trust that they are financially reliable.
Received Legal Advice: a requirement from some lenders in order to confirm guarantors are aware of the risks.

Guarantor Liability If You Can’t Pay Your Mortgage

If you don’t miss your repayments, your guarantor won’t have to do anything. However, if missed repayments mean that the lender has to repossess and sell your property, both you and your guarantor would usually be responsible for any shortfall if the property is sold for less than the amount still owed on the mortgage.

Joint Mortgages

Joint mortgages allow a parent and child to buy a property together, meaning both names are on the mortgage and the property deeds. This means your parent can use their income and savings to boost your mortgage changes.

JBSP mortgages

Joint Borrower Sole Proprietor (JBSP) deals allow parents and children to club together to get a mortgage. The big difference is that, while the parent and child are both named on the mortgage, only the child’s name will be on the property’s deeds, meaning the parent will be able to avoid the stamp duty surcharge

How Can Friends Capital Help with Guarantor Mortgages?

Friends Capital have relationships with lenders that specialise in guarantor backed mortgages. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:

Find you a lender that offers guarantor mortgages
Find you a deal appropriate to your personal circumstance
Offer unbiased financial advice
Give advice on what mortgage lenders will require, including giving you advice on an exit strategy for the mortgage end
Give you a no obligation mortgage quote
Deal with all the paper work, liaise with the lenders and solicitors. We will also make sure the application goes through as quickly as possible

Either, book an appointment online or request a call back below.