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Guarantor mortgages

ag359
Posts: 333 Forumite
Struggling to find an answer to a simple question online, so perhaps one of the many mortgage advisors on here might be able to help.
How much could I expect to be able to borrow on a mortgage if it were to be guaranteed by my parents. My partner and I have an approximate gross income of £62k, my parents' joint income is in the region of £75k. We would be able to put down a deposit of 5%, so would be looking for a 95% mortgage. For the time being at least, please ignore the issue of whether we can afford the repayments (although obviously I'll factor that in eventually) - at the moment I'm just looking to find out what we would be able to borrow.
Thanks in advance for any help.
How much could I expect to be able to borrow on a mortgage if it were to be guaranteed by my parents. My partner and I have an approximate gross income of £62k, my parents' joint income is in the region of £75k. We would be able to put down a deposit of 5%, so would be looking for a 95% mortgage. For the time being at least, please ignore the issue of whether we can afford the repayments (although obviously I'll factor that in eventually) - at the moment I'm just looking to find out what we would be able to borrow.
Thanks in advance for any help.
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When we helped our youngest son to buy we put the mortgage on our house (by then mortgage free) and had a trust deed (or is it deed of trust) drawn up by the solicitor. It worked out beeter in our circumstances because of the loan to value ratio. Basically our son wanted to borrow £90K to put that on his flat would have been about 95% so a higher rate but to put it on our house (over £500K) would have been just less than 20% so we got a much better rate. Now we are our son's lender.0
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What kind of property prices would you be looking at?
I think working it backwards might make it easier to see if it is do-ableI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Struggling to find an answer to a simple question online, so perhaps one of the many mortgage advisors on here might be able to help.
How much could I expect to be able to borrow on a mortgage if it were to be guaranteed by my parents. My partner and I have an approximate gross income of £62k, my parents' joint income is in the region of £75k. We would be able to put down a deposit of 5%, so would be looking for a 95% mortgage. For the time being at least, please ignore the issue of whether we can afford the repayments (although obviously I'll factor that in eventually) - at the moment I'm just looking to find out what we would be able to borrow.
Thanks in advance for any help.
How much are you looking to borrow as your joint incomes will allow you to borrow around £200,000 plus the guarantors income around the same, making £400,000, subject to certain questions being answered.
Are the guarantors income free of mortgages and loans?
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
We'd be looking at something around the £350k mark hopefully.
Parents do still have a mortgage on their current house - I don't know the details but I would imagine it isn't huge (I think the house only cost them 130k, and that was ten years ago, and they haven't remortgaged at any point).0 -
Based on that, there may be a handful of lenders that could agree the mortgage on your joint incomes alone
That is, provided you meet all the other criteriaI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
We'd be looking at something around the £350k mark hopefully.
Parents do still have a mortgage on their current house - I don't know the details but I would imagine it isn't huge (I think the house only cost them 130k, and that was ten years ago, and they haven't remortgaged at any point).
The existing mortgage would affect the guarantee but looking at the figures it looks easy.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0 -
Just another thought
In order to avoid potential IHT and CGT complications if you go down the guarantor route, could your parents raise some equiy from their property, in order for you to put down as a larger deposit? Again this way making it easier to buy just in your own names?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Based on that, there may be a handful of lenders that could agree the mortgage on your joint incomes alone
That is, provided you meet all the other criteria
Even with a 95% mortgage? That's interesting...my mortgage advisor didn't seem to think this would be possible. Any clues as to which lenders I should be looking at0 -
JoeK
Thanks for that. You say it would be easy - does that mean we'd even have a chance of stretching to 400k?
I could only answer that if I knew what mortgage your parents had.
Can you find out?
I would however be concerned about affordability.
JoeKI am an Independent Financial Adviser.Anything posted on this forum is for discussion purposes only. It should not be considered financial advice. Different people have different needs and what is right for one person may be different for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser who can advise you after finding out more about your situation.0
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