How a guarantor mortgage works

News 16.08.2019

hofford

All you need to know about a guarantor mortgage and how it works.

A guarantor mortgage is a way of offering assurance to lenders, if you do not have a large enough deposit or are unable to borrow enough in your own name.

Although a guarantor is a good, non monetary way to give lenders some security over the money they are lending you. They will however expect your guarantor to:

  • Have a good credit rating
  • Be aged between 18 and 65 years old
  • Have a good amount of equity in their own property

As a guarantor mortgage put your guarantor’s property and finances at risk, it is your responsibility to ensure that you can afford to pay back the mortgage yourself.

Your guarantor should also seek independent advice, as it is important that both parties fully understand the agreement they are potentially entering into.

We are always on hand to answer your questions. Our friendly team are experts in the mortgage market and can chat through all of your options, so get in touch today.