Guarantor mortgages

firsttimer87

Hi all

Myself and my fiance are planning on buying our first home in London. We have a 10% deposit saved up. He is in a permanent job (but has recently changed jobs so is in his probation period). I am in a fixed term contract which may be made permanent in the next couple of months. We have been wanting to buy for a while and since the London marking is growing so rapidly we are nervous about wiating the few months until I get a permanent contract, as we are worried we will be priced out of the market in the meantime. My partners parents have offered to act as guarantors and their bank (nationwide) has said this is possible. However when I called L and C they said nowhere does guarentor mortgages anymore? I know this can't be true as nationwide is offering us one. Is there a reason brokers don't like dealing with them? How can I find out the best guarentor mortgages? Also is there any significant downside to this approach (e.g. will it be worse rates) which means I should jsut wait the extra couple of months?
Sorry for the long post- so lost and dont know where to start!

Thanks!

Senior_Paper_Monitor

L & C are wrong (I speak as employee of a firm who display page one on google for 'guarantor mortgages' - I say this as a qualifier, not touting for business as due MMR pressures we are not taking any new cases until next month).


Guarantor mortgages are almost inevitably a 'shed load of work' which may answer your questions about why "mortgage brokers don't like dealing with them".


I suspect I will be spending much of the next two weeks re-researching the criteria post MMR, but they certainly still exist (as do other similar structures/options)

kingstreet

Nothing in your OP suggests you really need a guarantor.

There are lenders who will accept both the points you are suggesting will require the introduction of a guarantor.

In practical terms, will his parents be able to guarantee the whole mortgage, for the whole term? In my experience, many can't.