[divider]\r\n<h2 id="what-is">What is a guarantor mortgage?<\/h2>\r\nA guarantor mortgage can help a borrower purchase a home if they have no deposit or their financial circumstances would normally put a lender off.\u00a0Also know as a family-assisted mortgage, these agreements typically require a family member to act as a guarantor for the mortgage, which means they must step in to make any payments if the borrower cannot do so.\r\n<h3>What is the role of a guarantor?<\/h3>\r\nThe person acting as guarantor for you takes partial responsibility for your mortgage. This means that they may be liable to make any mortgage payments you can\u2019t meet.It also means they will either need to secure the home loan against a property they already own or place a lump sum into a savings account held by the lender \u2013 read on for more information about this. [divider]\r\n<h2 id="how-do-they-work">How does it work?<\/h2>\r\nIf you\u2019re taking out a mortgage with a guarantor, the person acting as your guarantor will need to be named on the title deeds.\u00a0They will not own a share of the property but must sign a legal agreement to make any mortgage payments if you, as the borrower, fall behind.\u00a0A guarantor for a mortgage may also have to put up security to safeguard the loan, which could be a property or some of the equity they already own.\r\n<h3>What security is required?<\/h3>\r\nBased on the lender\u2019s requirements, a guarantor for a mortgage may have to secure the loan against either:\r\n<ul>\r\n \t<li><b>A property of their own<\/b> The lender will hold a charge on the security property, meaning the guarantor of the mortgage could potentially lose it through repossession if the borrower misses too many payments.<\/li>\r\n \t<li><b>Their savings<\/b>. The mortgage loan guarantor places a lump sum from their savings into an account held by the lender. They cannot withdraw from this pot for a set number of years (usually between 3 and 5) or until a certain amount of the mortgage loan has been repaid. Savings will usually accrue some interest while held in the lender account.<\/li>\r\n<\/ul>\r\nFor further advice on getting a mortgage with a guarantor, or to get the ball rolling on an application for one, <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">get in touch<\/a>. We\u2019ll match you with one of the whole-of-market brokers we work with. With access to the entire market, they will be able to answer all your questions and ensure you get the right mortgage solution at the best available price. [divider]\r\n<h2 id="why-get">Why get a guarantor mortgage?<\/h2>\r\nThere are a number of scenarios where mortgages with a guarantor can offer a lifeline to borrowers who would otherwise struggle to find credit, such as:\r\n<ul>\r\n \t<li>When a borrower has insufficient or no deposit<\/li>\r\n \t<li>They are a first-time buyer<\/li>\r\n \t<li>They have low income<\/li>\r\n \t<li>They want to buy a home they could not afford without support<\/li>\r\n \t<li>The borrower has a poor credit rating<\/li>\r\n<\/ul>\r\n<h2 id="how-to-get">How do I get a guarantor mortgage?<\/h2>\r\nGetting a mortgage with a guarantor is no different from applying for any other mortgage product, although you will obviously need to get a family member or close friend onboard with your plan before you make your application. From there, the best course of action is to find a broker with access to every guarantor home mortgage lender on the market. If you do this, you can be certain all of the best guarantor mortgage deals you\u2019re eligible for will be available to you.\r\n<h2 id="no-deposit">Can I get one with no deposit?<\/h2>\r\nYes, if you don\u2019t have any deposit to put down, it\u2019s possible to get a 100% mortgage with a guarantor supporting you.\u00a0 Some mortgage lenders will offer 100% loan-to-value (LTV) deals, as long as your guarantor meets their eligibility and affordability requirements. Guarantors need to have adequate equity in their own property or savings they are willing to deposit as security. We discuss this further in the section below. Many borrowers use a guarantor instead of a deposit. In fact, you\u2019re unlikely to get a 100% mortgage with no guarantor as these products aren\u2019t usually offered under other circumstances. However, should you have a\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/low-deposit-mortgages\/">low deposit<\/a>, there may be alternatives you can consider.\r\n<h3>Can I get a guarantor mortgage with 95% LTV<\/h3>\r\nThis is certainly possible, providing you and your guarantor pass the lender\u2019s checks.\u00a0With a 5% deposit available, you could take out a 95% LTV guarantor mortgage, provided you could find a lender offering a deal like this and you passed all their criteria and affordability checks.\u00a0Since the deposit would be taken care of, having a guarantor on the mortgage would help you pass the affordability checks for the loan itself, or enable you to borrow more than you would without the support of a guarantor. [divider]\r\n<h2 id="son-daughter">Can I be a guarantor for my son or daughter\u2019s mortgage?<\/h2>\r\nYes, you may be able to support your child through a guarantor mortgage as a parent. However, most lenders have eligibility requirements for guarantors that you\u2019ll need to meet.\r\n\r\nParent guarantor mortgage requirements include:\r\n<ul>\r\n \t<li><b>Owning their own property<\/b>. This is not a strict requirement of all lenders, but those that do require the property to either be owned outright or they must at least have sufficient equity in it. Some lenders expect a guarantor to own a minimum of 30% of any property they\u2019re putting up as security.<\/li>\r\n \t<li><b>Have high enough income<\/b>. The lender will want to see that the guarantor has the means to cover the mortgage payments if the borrower defaults.<\/li>\r\n \t<li><b>Have a clean credit rating<\/b>. This will help convince the lender that you\u2019re financially stable and able to step in if the borrower defaults.<\/li>\r\n<\/ul>\r\n<h3>Are parental guarantors responsible for 100% of the mortgage?<\/h3>\r\nMost of the time, yes, but it\u2019s not always the case. A guarantor mortgage may leave the parent responsible for paying a percentage of the debt if their child defaults, depending on the agreement the borrower negotiates with the lender when taking out the loan. Some mortgage providers might consider lending 100% of a property\u2019s value on parental guarantor mortgages, but allow the guarantor to take responsibility for only a percentage of the loan in the event of a default. For example, if you\u2019re buying a property worth \u00a3100,000 and your mortgage lender has agreed that your guarantor will be responsible for clearing 50% of the debt if you\u2019re unable to, the mortgage provider would take a charge of \u00a350,000 on the security property.\r\n<h2 id="family">What is a family guarantor mortgage?<\/h2>\r\nThese work in exactly the same way as parent guarantor mortgages. The only real difference is that it might be another family member acting as guarantor, rather than one or both parents.Some lenders will only allow a parent, grandparent or step-parent to act as a guarantor.\u00a0Others are more flexible and will approve siblings, other relatives and even close friends, but these deals are obviously harder to come by.\u00a0You should also be aware that some mortgage providers might use the term \u2018family guarantor mortgage\u2019 to describe a deal where only a parent can act as the guarantor. [divider]\r\n<h2 id="interest-rates">How to get the best interest rates<\/h2>\r\nMortgage rates often fluctuate and can change at any time, but there\u2019s a way you can ensure that you\u2019ll end up on the best ones available to those using a guarantor.First off, you need to have access to the entire market to make sure the most favourable deals you qualify for are within reach. Secondly, you should try to meet the guarantor mortgage eligibility criteria with as many lenders as possible...\r\n<h3>Guarantor mortgage eligibility requirements<\/h3>\r\nGuarantors on mortgages have eligibility requirements that they must satisfy, but the borrower themselves need to meet the lender\u2019s standard mortgage criteria too.\u00a0Most lenders determine affordability and eligibility based on the following factors:\r\n<ul>\r\n \t<li><b>Income and how the borrower is employed<\/b>. Obviously, the more you earn, the better; but having a guarantor can offset the risk if the borrower has low income. Those who are <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/">self-employed <\/a>or supplement their income with things lik<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/">e regular <\/a><a href="https:\/\/www.onlinemortgageadvisor.co.uk\/income-types\/using-commission-and-bonus-income-for-mortgages\/">bonuses and commission <\/a>may need a specialist lender.<\/li>\r\n \t<li><b>Deposit<\/b>. The minimum <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/">deposit<\/a> requirement is usually 5% for a residential property or 15% for a buy-to-let. However, having a guarantor means you may not need to stump up any deposit.<\/li>\r\n \t<li><b>Credit rating<\/b>. Borrowers with a\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">poor credit<\/a> rating may need to find a specialist lender to ensure they end up with the best rates.<\/li>\r\n \t<li><b>Age<\/b>. Some mortgage providers have strict upper and lower age limits.<\/li>\r\n \t<li><b>The property type<\/b>. A specialist lender might be needed if the property you\u2019re buying has \u2018<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/property-types\/non-standard-construction\/">non-standard\u2019 construction<\/a>(e.g. thatched roof, timber frame).<\/li>\r\n \t<li><b>The borrower\u2019s outgoings<\/b>. Significant outgoings, such as other outstanding loans or dependent children, can affect the amount you\u2019re able to borrow.<\/li>\r\n<\/ul>\r\nFor further information about getting the best UK guarantor mortgages rates, <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a> and an expert broker will discuss eligibility with you over the phone and connect you with the best lender to fit your needs and circumstances. [divider]\r\n<h2 id="bad-credit">Can I get a guarantor mortgage with bad credit?<\/h2>\r\nYes, guarantor mortgage lenders don\u2019t usually treat <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/bad-credit-mortgages\/how-to-get-a-mortgage-with-bad-credit\/">bad credit mortgage applications<\/a> any differently to other types of lenders. If the borrower\u2019s credit rating is considered too poor for any provider to take on, having a guarantor behind them is unlikely to make a difference. That said, the advisors we work with can connect you to lenders who are more than happy to cater for customers with the following on their file, regardless of whether they have backing from a reliable guarantor\u2026\r\n<ul>\r\n \t<li>No credit history<\/li>\r\n \t<li>Low credit score<\/li>\r\n \t<li>Late payments<\/li>\r\n \t<li>Missed mortgage payments<\/li>\r\n \t<li>Defaults<\/li>\r\n \t<li>CCJs<\/li>\r\n \t<li>IVAs<\/li>\r\n \t<li>Debt management schemes<\/li>\r\n \t<li>Repossessions<\/li>\r\n \t<li>Bankruptcy<\/li>\r\n \t<li>Payday loans<\/li>\r\n \t<li>Multiple credit problems<\/li>\r\n<\/ul>\r\nWhile some lenders (mainstream ones, in particular) might offer you unfavourable rates or turn you away entirely if any of the above is against your name, a specialist mortgage provider might take the severity and age of the credit issue into account, as well as how closely you meet their other eligibility requirements.[divider]\r\n<h2 id="age-limits">What are the age limits?<\/h2>\r\nSome mortgage lenders only accept applicants who are over 21, so a specialist provider might be called for if you\u2019re younger than that.\u00a0At the other end of the scale, if you\u2019re a senior borrower, certain lenders might be okay with another relative acting as your guarantor \u2013 although these deals are more difficult to come by (due to fewer lenders and stricter eligibility) since some providers prefer the guarantor to be a parent, grandparent or step parent.\u00a0If you\u2019re aiming to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgages-for-pensioners\/">borrow into your retirement<\/a>with the help of a guarantor, take note that some lenders won\u2019t offer mortgages to anyone over 75, others will go up to 85 and a minority will lend to a retiree of any age, under the right circumstances.\r\n<h3>Are there guarantor mortgages for over 70s?<\/h3>\r\nIn theory, yes. Although some lenders will only accept parents, grandparents or step-parents as guarantors, others are more flexible and may consider allowing other family members, or a close friend, to act as a guarantor for an elderly borrower.\u00a0Be aware that some lenders impose age limits for all mortgages and won\u2019t cater for anyone over 75. Others go up to 85 and a minority will demand no upper age limit if they\u2019re confident you can continue paying the mortgage during retirement.\u00a0If you are an older borrower looking to use a younger guarantor, perhaps to help with affordability in borrowing money on a property you own, it may be more sensible to consider equity release with a <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/lifetime-mortgages\/">lifetime mortgage<\/a>.\r\n<h3>What is the maximum age for a mortgage guarantor?<\/h3>\r\nSome lenders also set age limits for a guarantor on a mortgage. While other providers have no maximum age for the guarantor but may ask that the loan finishes by the time they\u2019re 75 or, sometimes, 80. [divider]\r\n<h2 id="first-time-buyer">Are there guarantor mortgages for first-time buyers?<\/h2>\r\nYes, absolutely. In fact, some lenders will only offer you a mortgage with a guarantor clause if you\u2019re a\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/first-time-buyer-mortgages\/">first-time buyer<\/a>.\u00a0Certain providers limit these deals to customers who are buying their first home and will not approve them for those who are remortgaging or moving house.\u00a0Guarantor mortgages are often a good fit for first-timers who may have limited income or might be struggling to find a deposit.\r\n<h3>Can you have a guarantor on a Help to Buy mortgage?<\/h3>\r\nNot usually. Government schemes such as <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/help-to-buy-mortgages\/">Help to Buy<\/a>, Right to Buy and <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/shared-ownership\/">Shared Ownership<\/a>cannot be used with a guarantor mortgage as far as the vast majority of lenders are concerned. However, there may be other options available if you\u2019re struggling to meet a lender\u2019s affordability requirements and qualify for any of these schemes, such as adding another person to the mortgage in the traditional sense.\r\n<h3>Are there guarantor mortgages for first-time buyers with bad credit?<\/h3>\r\nYes! Guarantor mortgages are aimed specifically at <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/first-time-buyer-mortgages\/">first-time buyers <\/a>and some providers may overlook any bad credit on your file as long as your guarantor passes their eligibility and affordability checks.\u00a0The lending decision may, of course, be based on other factors too, such as the severity of your credit issues.[divider]\r\n<h2 id="borrow">How much can I borrow?<\/h2>\r\nIf you\u2019re using a guarantor, the lender will use a guarantor mortgage calculator to work out how much you can afford to borrow.\u00a0They will use data such as your income, your credit rating and your guarantor\u2019s financial situation to <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-affordability\/">calculate your affordability<\/a>. However, lenders tend to use different ways to calculate your affordability so the outcome isn\u2019t necessarily the same with every lender. Most mortgage lenders will offer eligible borrowers a mortgage based on 4x their income, some will go to 5x and a minority 6x under the right circumstances. If these multiples don\u2019t stretch far enough, the provider might be flexible and lend you more if a friend or close family member has agreed to act as guarantor. Although you would generally need fairly exceptional circumstances to achieve this. For example, if you were eligible for a \u00a3150,000 mortgage outright, with a guarantor onside, a lender might be willing to lend you \u00a3180,000, although the exact amount of extra capital you qualify for may vary from one provider to the next. \u00a0[divider]\r\n<h2 id="where-to-get">Can I get a guarantor mortgage anywhere in the UK?<\/h2>\r\nTechnically, yes, but there are a few caveats. Guarantor mortgage providers operate all over the UK, but some postcode restrictions on certain places in Wales, Scotland and <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/mortgage-northern-ireland\/">Northern Ireland<\/a>.\u00a0Therefore, guarantor mortgages might be harder to come by in <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/mortgage-application\/getting-a-mortgage-in-scotland\/">Scotland <\/a>if the property you\u2019re buying is in the Highlands or off the mainland, for instance.\u00a0However, there are specialist guarantor mortgage lenders in Scotland, Wales and Northern Ireland who might be able to offer you a lifeline where others can\u2019t.[divider]\r\n<h2 id="faq">Guarantor mortgage FAQ<\/h2>\r\nCustomers who are thinking about using a guarantor to secure a mortgage or are considering acting as a guarantor often ask us the following questions:\r\n<h3>Does having a guarantor help get a mortgage?<\/h3>\r\nIt can help if you are struggling to get a mortgage due to having an insufficient deposit or when your income doesn\u2019t stretch far enough to pass the lender\u2019s affordability checks.\u00a0With a guarantor behind you, a lender might be willing to offer you a mortgage based on 100% of the property\u2019s value or agree to let you borrow more.\r\n<h3>Can I borrow more on my mortgage with a guarantor?<\/h3>\r\nSome lenders will allow this, yes.\u00a0A number of providers will offer 100% LTV deals to borrowers who are using a guarantor, and others may allow you to borrow a larger amount if your income doesn\u2019t stretch far enough to cover the mortgage.\r\n<h3>Does being a guarantor affect me getting a mortgage?<\/h3>\r\nIt may do. The act of becoming a guarantor will not usually impact on your credit rating. This will only be affected if the borrower defaults and you\u2019re unable to pay the debt for them. Generally, your guarantor duties will be taken into account when your affordability is being calculated, which may reduce the amount you can afford to borrow even though you are not technically making any payments, regardless of how well conducted the mortgage is by the owner.\r\n<h3>Should I take out insurance if I\u2019m acting as a guarantor?<\/h3>\r\nA guarantor on any home mortgage loan might want to consider taking out <a href="https:\/\/www.onlinemoneyadvisor.co.uk\/insurance\/income-protection-insurance\/">income protection insurance. <\/a>Doing so will ensure you are covered in the event of the borrower defaulting and of you being unable to cover the debt due to things like illness, injury or redundancy. It may also be a good idea to convince the borrower to take out similar cover themselves to help protect their position and, by default, your own.\r\n<h3>Can I get a self-employed mortgage with a guarantor?<\/h3>\r\nYes, there are guarantor mortgages for <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/self-employed-mortgages\/">self-employed borrowers<\/a>, but a specialist lender might be needed to ensure you end up on the most favourable rates.\u00a0The way mortgage lenders treat self-employed income, including the amount of it you can declare and how long they need you to have been trading for, can vary greatly, so it\u2019s important to find the lender with the most accommodating approach to your specific employment situation.\u00a0>Having a guarantor can help you get a mortgage with no deposit and borrow more than you could otherwise afford, but a href="https:\/\/www.onlinemortgageadvisor.co.uk\/enquiry\/general-sf\/">specialist advice from a whole-of-market broker is what will help you find the best rates when you\u2019re self-employed.\r\n<h3>How long does a guarantor stay on a mortgage?<\/h3>\r\nYour lender decides this and you will not be able to remortgage to a non-guarantor deal until they give you the go-ahead.\u00a0A guarantor would usually stay on the mortgage for an agreed number of years or until a specific amount of the debt is paid. If you miss any repayments, this term may be extended by the lender.\r\n<h3>How many guarantors can you have on a mortgage?<\/h3>\r\nThe maximum number of guarantors most lenders will accept on a mortgage is two, and the majority of providers will insist that they are the parents, grandparents or step-parent(s) of the borrower.\r\n<h3>How do I remove a guarantor from a mortgage?<\/h3>\r\nWhether you\u2019re successful in removing your guarantor (assuming they\u2019ve agreed to be removed) might come down to why you want to cut this tie.\u00a0You will need to convince the lender that you have a legitimate reason, such as your financial situation changing for the better or the guarantor passing away.\u00a0If you open talks with your lender and tell them you wish to remove your guarantor, they will likely offer you one of the following options, depending on the circumstances:\r\n<ol>\r\n \t<li>They will let you remove the guarantor altogether<\/li>\r\n \t<li>They will expect you to replace the guarantor with another<\/li>\r\n \t<li>They will ask you to pay off the loan or refinance it<\/li>\r\n \t<li>If your guarantor has died, they may allow you to use some of their estate to pay off part of the mortgage<\/li>\r\n \t<li>They will reject your request and refuse to allow you to remove the guarantor or change the terms of the loan<\/li>\r\n<\/ol>\r\n<h3>Can I get a student mortgage if I have a guarantor?<\/h3>\r\nSpecialist lenders have been known to offer <a href="https:\/\/www.onlinemortgageadvisor.co.uk\/income-types\/student-mortgages\/">student mortgages<\/a> on the condition that they have a guarantor. Because students often have limited or no income in the traditional sense, this often means asking the guarantor to take responsibility for 100% of the debt, which is possible, as long as the guarantor is eligible. It\u2019s possible to get a guarantor mortgage without the borrower providing any proof of income, with the eligibility and affordability checks falling solely on the guarantor. This gives student borrowers a potential path to the property ladder and an expert broker with access to the entire market, like those we work with, is essential in these niche situations.\r\n<h3>Can I get a guarantor on a second mortgage?<\/h3>\r\nIn theory, this is possible, but your choice of lenders will be restricted as many providers only offer guarantor mortgages to first-time buyers.\r\n<h3>Is a guarantor mortgage the same as a springboard mortgage?<\/h3>\r\nYes! Some lenders have a different name for these products, calling them either\u00a0<a href="https:\/\/www.onlinemortgageadvisor.co.uk\/deposits\/a-guide-to-family-deposit-mortgages\/">family mortgages or springboard mortgages<\/a>, though they\u2019re the same thing. [divider]\r\n<h2 id="providers">Who offers guarantor mortgages?<\/h2>\r\nSome of the UK\u2019s mainstream lenders, including banks and building societies, will consider offering guarantor mortgages under the right circumstances.\u00a0Specialist lenders who cater for niche borrowers with things like bad credit against their name can also provide these products. The market is vast, so <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">specialist advice from a broker<\/a> with access to the whole market is a good way to ensure you\u2019re getting the best possible rate on your guarantor mortgage.\r\n<h3>Why seeking specialist advice is important<\/h3>\r\nIt\u2019s important to have access to the whole of the market to make sure you\u2019re paired up with the right lender based on your needs, goals and circumstances. Approaching a mainstream provider isn\u2019t always the best option, for a number of reasons. These include (at the time of writing):\r\n<ul>\r\n \t<li>If you were to approach Halifax for a guarantor mortgage, you would be turned away as this bank withdrew guarantor mortgages back in 2010<\/li>\r\n \t<li>Guarantor mortgages are also not available through Natwest<\/li>\r\n \t<li>Santander does not offer guarantor mortgages<\/li>\r\n \t<li>HSBC does not offer guarantor mortgages<\/li>\r\n \t<li>Virgin Money does not offer guarantor mortgages<\/li>\r\n \t<li>Lloyds no longer offer guarantor mortgages<\/li>\r\n \t<li>Nationwide guarantor mortgages usually come with strict underwriting criteria and a capped loan to value (LTV) ratio of 85%<\/li>\r\n \t<li>Barclays\u2019 take on a guarantor mortgage is a family springboard deal which requires the guarantor to place a 10% deposit in a savings account, which won\u2019t help you out if your guarantor only has a 5% deposit to contribute or your income is low<\/li>\r\n \t<li>Aldermore guarantor mortgages require the guarantor to be no older than 70 at the end of the guarantee period \u2013 a specialist lender may have a more flexible approach to age requirements<\/li>\r\n<\/ul>\r\nGiven that you will encounter restrictions at some of the UK\u2019s mainstream lenders or will be turned away by default, finding a broker with access to the whole market who can compare guarantor mortgages and connect you to the right provider is the best course of action.[divider]\r\n<h2 id="speak-to-expert">Speak to an expert<\/h2>\r\nIf you have questions and want to speak to an expert for the right advice, call us on 0808 189 2301 or <a href="https:\/\/enquiries.onlinemortgageadvisor.co.uk\/match-me-with-a-specialist-broker">make an enquiry<\/a> for\u00a0a no obligation chat. We\u2019ll match you with an advisor who can find the best deals based on your circumstances via their \u2018whole-of-market\u2019 access \u2013 some of which may not even be available to the public.