Buy a home with a guarantor mortgage

A guarantor mortgage is suitable for first home buyers and home movers who cannot afford a mortgage by themselves, and have family or friends who would like to help. Guarantor mortgages are not designed for buy-to-let mortgages or commercial properties.

Who can get a guarantor mortgage depends on the scheme you go with, as each will have their own eligibility criteria and affordability checks. But in general, you and your guarantor will need to have a suitable credit score, and be able to afford to cover the mortgage payments. Some guarantor schemes also place age restrictions on who can be a guarantor, normally up to the age of 70-80, or require you to prove 12 months worth of employment or pension history.

Yes, by having a guarantor on your mortgage application, you can get a bigger mortgage. This is by either putting down a larger house deposit, using your guarantor’s savings as security or adding your guarantor’s earnings to your application. However, in order to receive a mortgage offer, both you and your guarantor need to pass the lender’s affordability checks.

Yes, both home buyers and mortgage guarantors are credit checked when being assessed for a guarantor mortgage. A lender will only give an offer if both parties pass their eligibility criteria. If the homebuyer accepts a mortgage, and is unable to pay the monthly repayments later down the line, this could negatively impact both the homeowner’s and their guarantor’s credit score.