Jump to section
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:
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.
The mortgage lender will usually require the guarantor to be a parent or in some cases a grandparent.
Your guarantor will need to have:
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 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.
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
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:
One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation.
When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available.
If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’.
If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.