Guarantor Mortgages?

BMSrachael

Recently been turned down for a 95% mortgage and have a feeling am imminently about to be turned down for another! Was hoping to move quickly, got an agreement in principle and made an offer on a property not forseeing any problems, so this has thrown a bit of a spanner in the works! My mum is adamant on the idea of being a guarantor, as she has paid her mortgage off early. I feel a little uncomfortable about the idea, seems like a lot of responsibility for her- not that I'm planning on not paying the mortgage but you never know what might happen in the future.

ANYWAY, does anyone even offer guarantor mortgages? Are the interest rates going to be unfavourable? Would I still have to be credit checked? Are they a terrible idea? The only one I've heard of is offered by Aldermore and I know nothing about them.

Thanks.

Thrugelmir

Your mortgage application would be processed in the normal way. In addition your mum would need to supply detailed financial information. In that a guarantor needs to have the financial resources to meet the monthly mortgage payment in the event of default. Being mortgage free is not sufficient.

maria_my

Don't know if this helps but we put the idea to a broker to try and get a larger mortgage amount, but the broker a like advised that lenders do not like gurantor mortgages... not sure why my partner spoke to him, but it removed the idea from our minds quickly.

BMSrachael

Thanks Maria, we're not looking to borrow a particularly large amount, we're just short on deposit and time! Looking for a special gaurantor product rather than being guarantor-ed on a normal product, if you see what I mean.