Guarantor Mortgage

yasmin36

Please accept my apologies for asking for advice on my first post!

My brother and his girlfriend have jointly owned a property for the last 5 years, she has very recently left him for someone else. My brother would like to remain in their home and take on the mortgage alone. She has no interest in the living there and would take a small amount of money to walk away.

However, I am concerned about my brother's chances of getting a mortgage. The property is worth approx £175k, with £140k outstanding on the mortgage. My brother earns £32k a year. He has no other financial commitments. He is 27.

I would like to help him, possibly by acting as a guarantor. I earn 66k + 25% bonus, but I do have a mortgage of my own with my husband. I know that we would need to go and see a broker, but my brother is heartbroken at the moment, and I am hesistant to put him through a discussion if there is no hope.

Thank you so much for taking the time to read this!

Dave_Ham

It is absolutely possible, but would depend upon the bank his current mortgage is with (if tied in) and your mortgage value, cost and any credit cards/loans/car finance you both have.

It may also limit your options if you and your Husband ever want to buy a new home..

Thrugelmir

yasmin36 wrote: »

However, I am concerned about my brother's chances of getting a mortgage. The property is worth approx £175k, with £140k outstanding on the mortgage. My brother earns £32k a year. He has no other financial commitments. He is 27.

Would seem best to sell and buy a cheaper property.

Wh05apk

Potentially it could be possible without you needing to be guarantor, if it was possibe that would be far preferable rather than you acting as guarantor, with the costs and implications that entails.

yasmin36

Thanks for your replies. I realised after posting that I missed out a rather important detail, my brother is half way through a chartership which upon completion (in 2 years time) will see his salary increase to 48K pa. So this would be a short-term solution.

I think in terms of affordability I would be ok. We moved house 9 months ago, so not planning to move again soon. Shortly before then we had a mortgage offer (for a sale that fell through) for 100k more than the one we eventually took up.

Senior_Paper_Monitor

All looks pretty do-able with a numbe rof possible solutions/routes.

See a broker

yasmin36

I will make an appointment! Thanks all!