What are the alternatives to having a guarantor?
Published 23rd August 2019
If you don’t have a suitable guarantor or this type of mortgage is not for you, then there may be other options available to help you buy the property you want.
If a lack of deposit is an issue:
the new government Help to Buy 2 scheme may be of interest, as this allows you to buy a property with just 5% deposit on a relatively decent rate. Alternatively, there are lenders that are happy with you putting your deposit on a credit card or personal loan – many don’t allow this due to the increased risk, but there are some that do so long as you can prove you can afford all borrowing.
For a full breakdown of your options when buying with little / no deposit, visit our dedicated low deposit mortgage page
If affordability is an issue:
Perhaps because of your guarantor’s age or income, it may be an idea to consider the following:
- Ask another family member - It's possible to have someone other than your parents as guarantor, see the list here.
- Consider a joint mortgage – Having another person on the actual application, so that they would be joint owner of the house. This allows all incomes to be considered, maximising the mortgage amount available. There are lenders willing to consider up to 4 incomes on one mortgage, with pension incomes accounted and some have no maximum age limit.
- Increase your deposit – By increasing the deposit on your property, this decreases the amount you need to borrow from mortgage providers. If you have a proposed guarantor that is willing to help but you have been declined a guarantor mortgage, we may be able to assist. By remortgaging or taking out a small secured loan on their property, you could put more towards your deposit, bringing the size of your mortgage down to a more affordable one, with you taking complete ownership without the need of a guarantor.
When you're looking to find a mortgage, parental help can be the best and most appropriate option. But it’s not for everyone.