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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*

If you’re considering purchasing your council house with a Right to Buy mortgage, one option you might be interested to learn more about is how to get a Right to Buy (RTB) mortgage with a guarantor.

In this article we take a look at what you should expect when you apply for a Right to Buy mortgage with a guarantor.

If you’re interested in finding out about getting a right to buy mortgage with a guarantor, save time and hassle by talking to one of the expert mortgage brokers we work with.

All the experts we work with are whole-of-market mortgage brokers with access to mortgage providers across the UK.

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Reasons you might need a guarantor

There are a number of reasons you may need a guarantor when you apply for a Right to Buy mortgage.

If you have no deposit or a history of bad credit which can make it difficult to get a mortgage, mortgage lenders may look at your application for a right to buy mortgage more favourably if you can apply with a guarantor.

When you have a guarantor, you may find more lenders willing to lend to you even if you:

Getting a Right to Buy mortgage with a guarantor would mean that your guarantor would be contractually obliged to step in and make mortgage payments on your behalf, in the event that you cannot meet the financial obligation for any reason.

Your guarantor will need to secure the mortgage against a property they already own or place an agreed lump sum into a savings account held by the mortgage lender.

Who can act as a guarantor for my Right to Buy mortgage?

Some lenders will only accept a family member, such as your parent, grandparent or step-parent as guarantor for your Right to Buy mortgage. However, some lenders may be willing to accept a close friend.

Whoever you ask to act as guarantor for you, most lenders will expect them to:

  1. Own their own property, or have enough equity to meet the lender’s minimum requirement. Although the figure will vary according to the mortgage provider, some lenders will need your guarantor to own at least 30% of their home outright.
  2. Have an income high enough to cover your repayments, if required, while still being able to meet their own mortgage payments and additional monthly expenditure.
  3. Have a strong credit record to demonstrate financial stability to the lender.

Anyone agreeing to act as a guarantor should get legal advice. Many mortgage lenders will need to see proof that this has happened before the purchase can go ahead.

How to get a guaranteed Right to Buy mortgage

To find out if you’re eligible for a Right to Buy mortgage, there’s a quiz you can take on the official government website.

Once you know you’re eligible, the first thing you’ll need to do is to complete an RTB1 application form.

The experts we work with can help save you time and trouble with both these things and, because they are experienced whole-of-market mortgage brokers, they’ll also be able to help you find a mortgage lender who specialises in guaranteed Right to Buy mortgages.

If you want to arrange a Right to Buy mortgage with a guarantor, get in touch and let one the expert brokers we work with save you time, hassle and money.

Speak to an expert about right to buy guarantor mortgages

Call 0808 189 2301 or make an enquiry to speak to one of the expert mortgage brokers we work with.

We’ll match you with a broker experienced in arranging guaranteed Right to Buy mortgages. They’ll be happy to answer all your questions and find you the right lender with the best available mortgage rates for your circumstances.

The service we offer is free, there’s absolutely no obligation and we won’t leave a mark on your credit rating.

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.