What difference does a guarantor make to a mortgage offer?

nrsql

I have a friend that is looking to move house (relationship split and all that).
She is on a very low wage and has kids to look after so wants a reasonably sized property - more than she would be able to afford via the multiple on her wage.
What would happen if she had a guarantor? Would this mean that the prime lenders would be able to ignore her wage as that wouldn't be a risk? I have a feeling they could get in trouble - but maybe if she (and the guarantor) sign something to say they know what they are gettig into?

I assume things like child support allowance (or whatever it's called) is taken into account.
Would about payments from husbands if it's not part of a formal settlement?

And yes I know a guarantor would be liable for the full mortgage payment and it could screw up the credit report and maybe is not a bright thing to do.
Would it mean that the financial history would now be tied or would this just appear as a potential liability on the guarantors report - or maybe not appear at all? i.e. if she screws up in other ways but not the mortgage would this affect the guarantors credit history.

HugoSP

I'm no expert but I would have thought a garantor is effectively lending his weight to the mortgage application, so his credit rating is at risk if things go belly up.

I know of one garantor who had to sell her house to bail her daughter out of a mortgage she couldn't service.

Other IFAs and Mortgage Advisers will be able to comment professionally, and whatever I say should NOT b believed over and above what they may say.

nrsql

HugoSP wrote: »

I'm no expert but I would have thought a garantor is effectively lending his weight to the mortgage application, so his credit rating is at risk if things go belly up.

I know of one garantor who had to sell her house to bail her daughter out of a mortgage she couldn't service.

Other IFAs and Mortgage Advisers will be able to comment professionally, and whatever I say should NOT b believed over and above what they may say.

Thanks but as I said I realise that.
The question is whether this would bring the mortgage offer in to the realms of prime lenders.
With a secondary question as to whether the finances would only be connected with respect to the mortgage agreement.

HugoSP

Ah I see!

I can only speak from experience from having a mortgage guaranteed for me by family 20 years ago!

Halifax lent the money without any problems.