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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 9th September 2020*

There are two main types of guarantor, whole loan guarantors and shortfall guarantors. Every lender is different in the criteria needed for mortgages with guarantors; most require the guarantor to afford the whole of the loan, with a select few just requiring the guarantor to afford the shortfall.

Whole loan guarantor: This is the most common guarantor criteria. With lenders aiming to reduce the risk involved for themselves, most require the guarantor to accept responsibility by providing cover for the whole of the mortgage. This means that the parent guarantor would have to be able to prove they can afford the entirety of the loan. If a borrower requires a mortgage of 140k but can only prove to afford 110k, the guarantor would still need to have ample income to cover the whole 140k. This may not be possible for some guarantors, especially as the lender will also take into account any other outgoings such as their own mortgages and other credit commitments.

Shortfall guarantor: Rare, but a possibility with some lenders, shortfall guarantor mortgages only require the guarantor to cover the surplus or remaining amount that the borrower can’t afford. For example, if a borrower needs a mortgage of 140k, but can only afford 110k, the guarantor would have to prove that they can afford the outstanding 30k.


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If you want to apply for a mortgage with a guarantor, maybe you want to know if you’re eligible or you’re looking for the best deals, please get in touch and one of the experts we work with will be in touch ASAP. If you require help immediate assistance please call 0808 189 2301.

Updated: 9th September 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.