Guarantor mortgage

Waspeze

Hi,
Just a quck question.. does anyone know of or have a list of Banks or Building societies that do guarantor mortgages (not to increase the amount borrowed, just to guarantee the mortgage based on my salary)?


TIA

Edit: just to add.. this is due to bad credit nearly 4 years ago, my parents are happy to guarantee a mortgage if I can get one!

Leon_W

A list ? You should be so lucky !

Sorry to be flippant but as far as I am aware there is probably only one lender that still does a Guarantor product. The Mortgage Works who are a division of Nationwide. You'll need to speak to a broker to access though.

There are a couple of lenders who have a sort of semi guarantor scheme ie: parent, but they either want them to deposit savings or take a charge on THEIR property.

Waspeze

No problem being flippant .. I didn't know that not many places accept them so that is "good" to know, thanks!

From talking to a few places, I should be able to get one on my own after next March so I think the sensible thing to do is wait and start the process then without the need for a guarantor.. I just assumed having one would be a good thing as any risk would be minimised.

Just out of interest, would a guarantor mortgage (if I somehow managed to get one) financially tie my parents to me (like a joint application)?

thanks again

Fatb_2

Hi,

I was also looking for guarantor mortgages just lately and when i went to a mortgage advisor, they were able to find a fair few available.

I recently applied for a guarantor mortgage through Natwest, but other lenders were Skiptons, Nationwide and i think Northern Rock.

I think most, if not all of these deals will only be accessible via an Advisor

Hope that helps

Waspeze

Thanks Fatb, that's useful to know! I'll make some enquiries!

kingstreet

For a guarantor case to work, your parents have to be able to afford to pay the whole payment on top of their own commitments and for the whole term. If they are retired, or due to retire soon, don't expect them to be able to guarantee for 25 years.

Fatb_2

Following the above point, The Co-op also do gurantor mortgages, though that is based on the parents acting as guarantors only until the age of 70 or 75. (cannot remember which) (google search for coop guarantor mortgage)

My application with the Natwest is for the full 35 years, despite my Dad (acting as guarantor) retiring in 2 years time.

Conrad

Something you need to bear in mind is that gurantor cases are only accdepted where it is considered the main original applicant has a realistic chance of supporting the mortgage alone within the short term and also that they have DEMONSTRATED the ability to keep to a long term financial contract.

I have not known a lender recently agree to a gurantor where the main applicant has had financial difficulty, afterall the FSA would likely deem it irresponsible lending if one day you got into arrears.

The only possible option apart from waiting, is a buy to let in parents name with a 25% deposit.