Guarantor Mortgages

Guarantor Mortgages Harvey Bowes Mortgage BrokersGuarantor mortgages are available to first-time buyers and available in some circumstances to those looking to remortgage and buy another property. The guarantor is someone willing to guarantee that mortgage payments will be made. Most lenders only accept guarantor mortgage applications where the guarantor is a ‘blood relative’ however there are some exceptions to the rule. The guarantor does not have to part with any money unless you, the borrower, fail to make your mortgage payments. The guarantor then has to step in and make those payments for you. Some lenders only expect the guarantor to be liable for the ’top slice’ of the mortgage, or in other words any extra you would not have been able to afford without a guarantor.

The advantages of guarantor mortgages:

  • You may be able to borrow more due to the borrowing power of the guarantor
  • Your guarantor can help you get a mortgage without spending any of their own money
  • You can take control of the mortgage at any timemortgage broker cardiff harvey bowes

The disadvantages of a guarantor mortgage:

  • Your guarantor is at financial risk if you cannot keep up repayments on your mortgage
  • Your guarantor may be restricted from borrowing further funds on their own home or from purchasing another property while acting as your guarantor
  • Guarantors must be able to prove they can support all of their own mortgage and potentially all or some of your mortgage

Who can qualify for a guarantor mortgage?

Lenders often favour applications from those who can demonstrate they have a career plan.  In other words where there is a likelihood that the applicant’s income is going to increase in a relatively short period of time (i.e. 2 to 7 years) and with the increased income the applicant can prove income sufficient for the guarantor can be removed.

This is not a professional mortgages mortgage broker cardiffhard and fast rule, however, and there are a variety of lenders who will consider applications supported by a guarantor.

Apply for a guarantor mortgage

If you are looking to apply for a guarantor mortgage, contact the team at Harvey Bowes today, we can talk you through the options and give you the right advice. You’ll save against searching every lenders; criteria yourself or visiting every lender on the high street and you’ll get expert advice too. Call us on 02921754150


Your home is at risk if you do not keep up repayments in your mortgage



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