Voted Britain's Best Mortgage Broker 2022. Tembo advises on a range of guarantor mortgages that could help you buy sooner or boost your budget. See how a guarantor mortgage could help you by creating a personalised recommendation with indicative interest rates and repayments.
34
The average age of a first time buyer in the UK
8 years
The average time it takes someone to save a deposit
9.1 x
The average income multiple needed to buy a home
264%
Average property price increase in the last 20 years
A guarantor is someone who supports your mortgage application, using their income, savings or property as security. A guarantor mortgage, also known as a family assisted mortgage, is a great solution for someone who is struggling to afford the home they want to buy. Mortgage guarantors tend to be relatives, but friends can also guarantee a mortgage. At Tembo, we call guarantors Boosters.
A mortgage guarantor can add their income to a buyer's mortgage application. This increases the amount that the buyer can borrow. We call this an Income Boost. The Booster won't be on the deeds of the property, but will be jointly liable alongside the buyer for making monthly repayments. If the buyer is unable to make the monthly mortgage payments, the Booster will have to pay.
It is possible for Boosters to use savings as a security against the property. The family member deposits some cash into a special savings account. This money is held as security for a certain number of years, or until the amount remaining on the mortgage falls below a certain percentage of the property's value. If the buyer misses any mortgage payments, the lender may have to hold onto the Booster's savings for longer.
If the Booster owns a property, or a certain percentage of a property, the property can be used as security against the mortgage. This means that if the buyer and the Booster is unable to keep up with mortgage repayments, the lender can forcibly sell the Booster's property. The lender does this as it reduces the risk for them if both the mortgage guarantor and the buyer are unable to pay. If your loved one owns a property and wants to assist you with your purchase, they can release equity from their property with a Deposit Boost, which is then gifted to you to buy your home.
Looking for a guarantor mortgage? An Income Boost is the UK's next generation guarantor mortgage. You can increase the amount you could afford by adding a family member or friend's income to the mortgage application. Only the buyer will be on the deeds of the property, and there's opportunity to have the mortgage only in your name if your income changes.
Buy the home you really love
By combining up to four income sources, an Income Boost can significantly increase a buyer's borrowing potential. So there's no need to compromise on your dream home or your dream location.
A stepping stone to doing it alone
An Income Boost is a temporary support for first buyers as they are getting onto the property ladder. When your circumstances change (i.e you get a pay rise), the Booster can come off the mortgage!
Your family won't be out of pocket
With an Income Boost there's no need for a Booster to dip into cash savings or investments to help their buyer. They won't be on the deeds of the property, meaning there's no stamp duty liability.
Create a personalised recommendation in under 10 minutes and see indicative interest rates and monthly mortgage payments. You'll also be able to book a call with one of our team to talk through how a guarantor mortgage could get you into your dream home.