A guarantor is a way of offering assurance to lenders if you don’t have a large enough deposit for your property, or if your credit history or other financial factors mean you can’t borrow in your own name.
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/s to have at least a few of these qualities:
> Have a good personal credit rating
> Be within the 18-65 age bracket
> Have good equity in their property and financial stability.
The bottom line is, it’s your guarantors property and finances that are put up as a risk instead of yours, meaning your personal responsibility is to ensure the guarantor isn’t effected and you can pay back the mortgage yourself.
There’s alot for you and guarantor to consider before agreeing to the lending agreement, and the guarantor will need to seek independent advice too, as it’s important both parties understand the agreement they’re entering into.
We’re always on hand to chat through your questions and options, our team are experts in the mortgage market, and can speak through all of your options, get in touch today.