Guarantor Mortgage from parents over 70 (but have a large residual business income)

Senior_Paper_Monitor

I think I answered that above - subject to confirming full background details - probably but only a handful of lenders would consider it (if that many).

somethingcorporate

A complex situation like this needs specific, tailored (and reliable) advice.

Go and see a good broker.

holly_hobby

As the guarantors are effectively the lenders backstop and legally responsbile for the mge in the event of your default (which is why their affordability is also assessed), then obv their age is important in respect of the lenders criteria and responsible lending regs (where you will see most lenders capping their max age at 75 yrs - although there are a handful whom have a much higher upper age cap).

As explained guarantor mges have always been designed as a shortterm measure (ie the lender wants to see a plan for the guarantors release), and normally where we have newly qualified professionals whom are expected to fast tack up their income in a relatively short period.

There are not where the mge mge is completely unaffordable, of where there is a history of poor credit.

The guarantor must seek independent legal advice as to understand the legal implications of their role (indeed the lender will usually require confirmation this has taken place pre completion), which includes they being legally responsible for repaying the debt, and may in some cases involve a charge on their (unencumbered) home (until their gtor discharge).

As SPM has stated, there may well be a home for this, but it will require a one to one placement exercise for the experienced broker (whom will essentially speak directly to BDMs of lenders whom they think (or know) will be in the market for this, or the less experience broker whom is savvy enough to know how to present such a case to obtain a positive solution (which as I say generally comes from prev experience and knowing what aspects the lender puts weighting on).

Anyhoo, to top and tail off to a whole of market broker you go, take all figs, inc those relating to parents and their property (if unencumbered), to give your guy/gal enough to get straight on the hunt.

Please expect to be charged a broker fee for this - it is not a straight fwd enquiry, and therefore will be more time consuming and involved for the adviser - it is also a lot to ask of your parents at their age (but I know they'll want to help regardless).

Hope this helps

Holly

Darwin88

Senior_Paper_Monitor wrote: »

I think I answered that above - subject to confirming full background details - probably but only a handful of lenders would consider it (if that many).

Thanks, that gives me some confidence towards meeting our goal. I'll take that up with the financial adviser and see what our options are.

Thanks for everyone's input, it's much appreciated.

Rich

Darwin88

holly_hobby wrote: »

Hope this helps

Holly

Very helpful, thanks Holly. So I should look for a specialist mortgage broker who has dealt with similar situations or knows of options on how to proceed?

I realise that it's a very complex situation, but it's possible that someone, somewhere will be open to such an arrangement.

Who knew that being offered financial help from one's parents could be so difficult to accept!

Many thanks

somethingcorporate

Most banks are sausage machines, given 90+% of their customers will fit a certain model (own deposit, own income etc).

It makes it somewhat awkward for those that do not quite fit the norm but doesn't mean it is any less reasonable!

I think you'll be able to sort something out, it's about minimising the time wasted on your part by making applications that will never succeed (as you will not fit every lenders criteria).

Darwin88

somethingcorporate wrote: »

Most banks are sausage machines, given 90+% of their customers will fit a certain model (own deposit, own income etc).

It makes it somewhat awkward for those that do not quite fit the norm but doesn't mean it is any less reasonable!

I think you'll be able to sort something out, it's about minimising the time wasted on your part by making applications that will never succeed (as you will not fit every lenders criteria).

Thanks, I hope so. Like you said, just because we don't conform with the usual criteria doesn't mean we don't stand a chance.

Hopefully the adviser we see tomorrow will either have good news or be decent enough to decline helping us if he doesn't believe he can help us. The last thing we want now is a broker to make doomed applications and set us back significantly.

All fingers and toes crossed. Thanks again for all the replies. :beer:

Dave_Ham

Agreed, just so you have realistic expectations with the meeting; 9/10 brokers you see will say this cannot be placed with these variables.

Given the information provided, I would say there is a chance of a solution; although as stated 15% deposit would give you more options and almost certainly a solution.

Good luck tomorrow, just be aware however logical your situation is; lenders are nervous of at least 2 of your variable factors.

holly_hobby

Yep, best of luck with your broker, but its also important to realise that there simply may not be any takers re the particular set of circs you have (esp in the curent climate) and the high LTV you are seeking.

And whilst you may have a gtor available, the lender doesn't really want to have to embark on invoking the gtor arrangement due to your default (which I am sure you have no intention of, but the lender always has to err on the "what if" scenerio).

If so, and if you're in a similar line of bus to when you were employed with some yrs experience, you may get away with 12 mths SE rtrading (audited accounts if Ltd), if a completely new enterprise, with no prev experience, I would suggest at least 2 yrs will be more realistic.

Anyhoo, your broker will (should) advise if this currently has any legs...

Wish you well

Holly x

Darwin88

Thanks for all the help, I'll heed the advice and approach this with realistic expectations. I may have more questions following the meeting, should I have good news I will post it in the interest that it might be of use to someone else.

Thanks