Guarantor Mortgage

jamesthompson87

I have recently been knocked back for a mortgage on the basis that I have a poor credit rating (it’s is actually only slightly lower than average so I’m surprised it was turned down).



My dad has offered to be a guarantor for the mortgage. Does anyone know which lenders, if any, would offer guarantor mortgages on the basis that the person buying the house has “poor” credit.



The company I initially applied with was Northern Rock and their website states guarantor mortgage are only offered in exceptional circumstances, which I’m guessing doesn’t include poor credit. I rang HSBC today and the advisor didn’t seem to think this was something they would do.



Thanks.

Thrugelmir

jamesthompson87 wrote: »

I have recently been knocked back for a mortgage on the basis that I have a poor credit rating (it’s is actually only slightly lower than average so I’m surprised it was turned down).

What do you regard as slightly lower than average?

jamesthompson87

My scroe on credit expert was 740, which is at the lower end on the "fair".

BoGoF

Your credit expert score is not the reason you were declined, it's a more or less random 3 digit number. The lender has it's own scoring methods.

However the info on your credit report may be the reason, what does that show? Plus, what is your income & how much are you looking to borrow?

_Andy_

Guarantor mortgages are where there are issues with the income, not your credit history.

izzywizzy2010

my partner has just had a mortgage agreeded with lloyds tsb which in effect is a guarantor mortgage

my partner will pay the mortgage and is the first apllicant
both his parents are also applicants but will be guarantors should we have a problem paying.

only issue we have had is we can now only have a maximum 19 year mortgage so means higher monthly payments but we will save more in the long run and hopefully i can be added and his parents removed when it is time to remortgage in 2 years

we have done it this way i as i had credit issues in the past and we thought it was pushing it with regards to him get 5x his salery

Conrad

Guarantor applications will not suceed where the residing applicant has credit issues as this would be deemed to be 'irresponsible lending' under FSA rules, which many of you newspaper readers have been rallying against - you all keep saying you want a return to good old fashioned safe lending, well your wish has been granted!