Want mortgage, mum willing to guarantee it Who Will Offer Us A Deal?

rexworthy

I need a small mortgage for 1/3 of the property value, I am moving area and will need to get job but I can afford to pay mortgage repayments based on income from child maintenance and child benefit etc. My mum is willing to guarantee mortgage, she could find the money for a months repayment if really needed (but I am confident I wont), she has no mortgage and can prove savings but she is over 65 (she cant do internet so wont be reading this!!). What companies will offer us something?

hazyjo

How many more years will you receive child maintenance/benefit? Doubt you'd be given a mortgage past that term anyway (if you could even get one)

As far as I am aware, they are not generally offering guarantor mortgages at the moment (maybe some exception but probably extortionate rates with an obscure company!).

Also doubt that they'd accept your mum as a guarantor if she's not in full time employment.

Can't you just rent?

Jx

NervousHomeowner

My partner and I have a 'Step Up' mortgage with Coventry Building Society, with my mum as a guarantor. The idea is that you have a guarantor who signs onto the mortgage with you, with the intention of taking them off the mortgage when you can pass the affordability tests. They offer competative rates and standard mortgage options e.g. trackers, fixed rate for 2 - 5 years. However, because you are already having to have a guarantor, they are very picky.

You say your mum could 'find the money for a month's repayment if really needed' - this won't be good enough for her to be a guarantor. Your mum will need to prove that she can comfortably pay your mortgage each month if you fail to pay up. You say she has savings and owns her own house but usually that isn't good enough - she would have to prove that she has a steady income & enough spare each month to cover your mortgage. I know you say that she is unlikely to ever need to do that but the bank won't care about that. My mum had to provide proof of any income along with our application and she is very secure financially but they don't really take that into account.

You also say your mum is over 65 - my mum is 50 and because she will retire before the full term of the mortgage, she had to provide proof of savings/pension to prove that she could pay the mortgage for us even if she wasn't working anymore. It is likely your mum would also have to do that.

Most guarantor mortgages also require that you are at least working part time and have been doing so for at least 6 months to a year. It is highly doubtful that they would offer you a mortgage without you having a steady job, even if you have a guarantor.

I think you would be best going to a broker or an IFA and seeing what they say, as they will know exactly who will accept your situation etc.

ACG

Depending on the age of the kids, you might be able to get a mortgage on those tax credits alone - more info is needed but why not sit down with a broker?

Errata

Your maintenance could stop tomorrow, you don't have a job, your mum doesn't have a job. I doubt any mortgage company will be interested in loaning you any money.