How will being a guarantor affect me?

purple-rain_3

Hi,

My parents moved into rented temporarily and are now struggling to get a mortgage due to some missed payments and pre-existing loan and card debts. If I were to act as a guarantor for the mortgage, how would this affect me? Would I still be able to get my own mortgage, or not?

I do understand I'd be liable for the repayments if they fail to make them. I'm not asking for advice on whether or not I should act as guarantor, I just want to know if it will prevent me getting my own mortgage in a few years. Will it be on my credit report? Will credit card companies take me acting as a guarantor into account when making decisions?

Thanks for any advice.

Wh05apk

Lenders will treat the mortgage you ae guarantor on as if it were your own, so if you were guarantor for £100k, then your income would have to support your own mortgage + £100k, so potentially it would restrict your ability to borrow.

Not sure if it would show on a credit report, however you would have to declare it on a mortgage application.

borkid

Hi I'm not 100% sure on this but my husband stood as guarantor for my daughter's mortgage and I think that the amount he was guarantor for was taken off the amount the B.Soc was prepared to lend us. This didn't affect us as we only needed a small mortgage just enough to cover the stamp duty and removal costs. After a couple of years she took him off being guarantor not sure how that worked but I think there was a small fee to pay by that time though she had a lot of equity in the house.