Guarantor or deposit - which is better?

KG

OK - I am looking at buying my first flat but I have no deposit. My mum may be in a position to help me, either by acting as guarantor, or by extending her own mortgarge to loan me a deposit which I would then pay her back on a monthly basis.

Bearing in mind that I have done my budget and wouldn't exceed what I can afford with whichever combination of borrowing I go for, which is the best option?

KPG

VIGILANT22

It is not a case of better...as it depends if you/mum fits the criteria of the lender
Many lenders now take the view re' guarantor mortgages are for those following a career path where they will have increased income and be able to support the mortgage on their own income within a few years. Also yr mum would have to demonstrate she has sufficient income to support both mortgages
On applying for a mortgage declaration of the source of deposit is required, loans are not looked upon favourably.
You should contact a whole of market mortgage advisor for further guidance/discussion......

opinions4u

You will still need a deposit with a guarantor.

No lender is going to advance you 100% just because Mum says she'll pay on your behalf if you can't meet your commitments.