Getting a mortgage using a guarantor

Felixforreal

Hi, I'm new here. This is my situation;

My girlfriend and I are looking to buy. We have a decent deposit but as self employed artists do not have the considered stability needed to gain a mortgage. The truth is we've been renting in London for 10+ years so anyone who does that we have the ability to pay said mortgage. Anyway. . . One of our parents owns their house and is willing to use the value (I don't wish to mention how much but its probably +/-7 figures) of that to help us get a mortgage and we have a healthy 5 figure deposit. None of us are sure how this works or if indeed it does still work. I know this was once an option, but will banks still lend in this situation?

Any help in pointing to the right people to talk to would be great, we're very inexperienced!

F

amnblog

Lenders are interested in your ability to repaid the mortgage.

Therefore income is key, otherwise the regulator will be all over them.

Support from your parents only works where your income is insufficient to manage the mortgage alone and their income makes the mortgage affordable.

The Lender is not interested in their capital asset, only their income.

Also, the Lender expects you to be able to manage the majority of the mortgage on your own income so you have to be close to affording it on your own, rather than nowhere near.

There are however, other ways beside a guarantor mortgage to provide a solution in this circumstance so an experienced mortgage broker is a good start.

Felixforreal

Thanks for the reply, this is along the lines of what I was thinking would be the case.

Could you elaborate slightly on the other options? And where would you recommend finding a good broker?

F

amnblog

Other options depend on your parent's, their situation, and if they are in a position to, and prepared to, raise money on their property, and or take lending in their own names.

The best way to find a good broker is to ask friends and family for a recommendation.

If you use a website such as unbiased to find a local broker remember to untick the 'show sponsored ads' only box for a full 'and unbiased' list.

Or you could get lucky and find a company like ours on line.