Guarantor mortgages

CDaniels1987

Me and my partner are looking at buying our first home together in the next few months as we are fed up of renting, however my partner is self-employed and only had her business for a few months, I dont earn an amazing amount (18k) however we have quite a bit of savings and at the moments we are paying £625 per month rent and we are fed up of having to keep moving house every 12 months, not being able to decorate and generally the payments being dead money!

I also have a poor credit history from when I was younger so I think we would have no chance in getting a mortgage, I have been reading up on Guarantor mortgages just and it seems like a really good idea, my partners dad would easily be able to act as a guarantor for us, so have you any of you had any experience with Guarantor mortgages? where the best place to go is and how they usually work them out?

Thanks in advance.

holly_hobby

The guarantors status and income is checked just as any ordinary applicant, their income must support all borrowings inc the mortgage they are agreeing to stand as gtor for.

The guarantor as well as the mortgagors, have full financial responsibility to repaying the mortgage - and will be pursued by the lender in the case of default.

Most lenders want a guide to reversal of the guarantor status.

Both you and your partner will be assessed as part of the process, regarding sufficient income to support the borrowings, and your credit history - with only 18k accoutable income, and a poor credit history, I don't hold much hope for a successful placement.

You may want to have a chat with a whole of market broker to set your mind at rest, but I would wait unitl your partner has at least 12 mths accounts, you have a clean credit record (6 yrs from regisgtration of defaults), and a decent deposit.

Sorry if this wasn't the reply you wanted ..

Hope this helps

Holly

CDaniels1987

Ok thanks for your reply but surely a guarantor is there to prove you can make the repayments and if for whatever reason you can't the guarantor will have to make them, I have no issues with the guarantor being accepted as he has perfect credit rating and earns an awful lot of money, however this is the only option we can find as there is no way I can prove that we could afford a mortgage, we have been paying between £600 and £650 per month rent now for nearly 4 years and although on paper I do not earn alot of money we do not struggle to pay that at all and we also have more than enough savings to cover the payments if our circumstances change, the problem is we are fed up of moving all the time and or money going into nothing for our future, a lot of my friends have got mortgages and pay about £100-£200 pm less than me and it's depressing!! This is why I think a guarantor mortgage could be the answer, I'll email some mortgage brokers tonight after work and see what info I can get.

holly_hobby

You may not have an issue with a guarantor arrangement, but mortgage lenders do - and the gtor will also have to meet the lenders status and critera checks - inc proof of income (by salary checks or SE accounts), and have sufficient income to service both his own financial commitments and the proposed mge under your name, with no adverse credit history. Is he willing to provide all such data to the mge lender in support or your app ?

You of course will also need a sufficient deposit and monies for all fees - should you indeed locate a lender willing to accept a gtor on 18k proven income.

I wish you well in your search

Holly