Joint mortgage and a guarantor.

Heisenberg87_2

Hello

First off let me say I'm pretty new when it comes to understanding mortgages so any help would be great. Here goes;

Me and me partner are both saving for a deposit and we have worked out we can save around £15,000 - £20,000 in 16 months. We are probably going to go and save that with Nation wide 'Save to Buy' account.

Our predicament is that we want our first home (as we have only been renting the past 3 years) not to be another 1 bed flat. We want to have a minimum of 2 bedrooms with a garden and ideally a house.

Our joint income is £41,000 not including bonus's etc... and we do not have any outlays apart from car insurance and a mobile phone bills. From what I've read we can borrow 3 times our salary (£123,000). Here is the next problem within our area Brighton, a 2 bedroom house is a long the lines of £200,00 - £250,000 is it possible that my mum can act as guarantor as she has only £18,000 left to pay on her mortgage of £250,000 to help us borrow more money?

Thanks!

lee111s

Guarantor's don't assist in being able to borrow more money. That's done on the affordability which the lender will draw up depending on your income.

kingstreet

You are incorrect. Many lenders will offer upto 4x joint incomes, a few others upto 5x.

Guarantor facilities are few and far between, unless you have a relative who wants to put up their savings or home as security for your mortgage, so avoid it if you can.

Heisenberg87_2

Thank you for your help guys, it's great to know it could be potentially 5 times our salary. My mum is happy to use her home as security but does not have cash to assist with the deposit. Last question is it possible for mum to also b on the mortgage but only me and my partner pay it? (my mum would just be there for back if the worst was to happen).

kingstreet

That is how many guarantor schemes work. The lender makes them a party to the application.

You may find your term is limited. For example, I'm 47, chances are if I was guarantor, or a party to my daughter's mortgage application, she would get no more than 17 years, as the lender would not wish to lend past my retirement age, 65.

As I said, try to avoid the guarantor thing. Use a lender's affordability calculator to see what you can borrow and use that to set your maximum purchase price. If you need more, then start thinking about adding a relative.

Remember, you can't add a relative without them being responsible for 100% of the mortgage, just as you are. It's called joint and several liability.

Heisenberg87_2

Fantastic. Thank you all for your help...