Will be a rental guarantor affect me getting a mortgage

Nailit23

My brother has asked me to be a guarantor for his new rental property. I'm hoping to buy my own house this year and want to know if this will affect me getting a mortgage? I know they will credit score me as guarantor and this will leave a footprint on my credit score but how does this affect my mortgage application.
Am I right that there has been some changes in the last 6 months about this?
Any help and advice would be great fully received.
I need to let him know this weekend.
Thanks

innovate

What liabilities do you assume as a rental guarantor?

chanz4

lettings don't do full search, only public data

[Deleted User]

The big concern with being a guarantor is that if your brother fails to pay his rent you inherit full responsibility and if you don't pay all outstanding rent you are very likely to end up with court action against you, which can result in a CCJ which will destroy your ability to get credit for more than half of a decade... being a guarantor is not something you should do lightly.

atush

Yes, it can affect your ability to borrow.

consult a mtg broker to see how much it would do so, and how to proceed.

We can't help further as you don't provide enough information.

robatwork

This is a great way of making a family rift likely in future. I would advise against it - nothing to do with credit score but have you really considered what would happen if he can't pay in future?

chanz4

atush wrote: »

Yes, it can affect your ability to borrow.

consult a mtg broker to see how much it would do so, and how to proceed.

We can't help further as you don't provide enough information.

they don't and cant do full searches unless they share data, so it wont harm or appear

innovate

chanz4 wrote: »

they don't and cant do full searches unless they share data, so it wont harm or appear

a search would be the least of the potential issues.

JoeCrystal

Nailit23, walk away from the idea of becoming a rental guarantor. It is one thing if it is a parent but not between siblings. It should be your brother that handles it on his own. It is a real time bomb between siblings in my opinion.

Cheers,
Joe

gfplux

Step one is the company loaning the money to your brother will check your ability to pay if he defaults.
You may or may not choose to tell them you will have extra outgoings in a year which will be a mortgage.
If your brother defaults after you are paying a mortgage will you manage to pay his loan as well?
The reasons for defaulting on a loan can be out of someone's control such as illness, accident or losing their job.
To be a guarantor is what it says, YOU guarantee to pay even if only one payment is missed.