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Guarantor Equivalents
Options
specs7777
Posts: 8 Forumite
As Guarantor Mortgages are now unavailable in the UK due to the new FCA guidelines, I am looking for an equivalent way of using my parents to get a higher mortgage price.
I am looking to borrow £130k, but the most I have been offered by any provider is £121k. I therefore need a way that involves my parents agreeing to put up their own property/income as collateral. They are more than willing to do this...
However... they are planning to buy another property themselves in 2 years time. So don't want to be liable for mine when they apply, as this will obviously affect their ability to borrow.
One idea I had... Is there a way of tailoring the deed of trust for me to be able to "buy out" their side of the mortgage in 2 years time? Similar to when a couple breaks up?
Or when we sign up to a joint mortgage, is there a way of only making them liable for the extra £9k I need?
I am looking to borrow £130k, but the most I have been offered by any provider is £121k. I therefore need a way that involves my parents agreeing to put up their own property/income as collateral. They are more than willing to do this...
However... they are planning to buy another property themselves in 2 years time. So don't want to be liable for mine when they apply, as this will obviously affect their ability to borrow.
One idea I had... Is there a way of tailoring the deed of trust for me to be able to "buy out" their side of the mortgage in 2 years time? Similar to when a couple breaks up?
Or when we sign up to a joint mortgage, is there a way of only making them liable for the extra £9k I need?
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Comments
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As Guarantor Mortgages are now unavailable in the UK due to the new FCA guidelines
Where did you get this notion from?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The FCA want lenders to provide "affordable" loans. Guarantors contradict this, as they're essentially saying "you can't afford this on your own". I have spoken to various lenders over the past week and none of them do guarantor mortgages.
If you can Google it and find me someone who does, you've done better than me!0 -
Speaking as someone whose firm pops up page 1 on a google search for 'guarantor mortgages' I think I might have noticed this huge change in policy.
Certainly new affordability calculations impact on all structures, including guarantor mortgages - but they are most certainly not banned.
In practice, despite 2 or 3 enquiries a day specifically for such arrangements, we do not write many guarantor mortgages, as there are usually better structures available - but they are far from dead.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
You are better set to speak to one competent broker than 'several lenders'.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
There are at least 3 lenders I know of who do guarantor or similar mortgages.
We dont need to google it, we know the lenders and get regular updates from them.
As above, speak to a broker there could be options for you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
There is always the Jeremy Bamber methodI am looking for an equivalent way of using my parents to get a higher mortgage priceThis is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Could you point me in the direction of a broker? I live in Nottingham, if that makes any difference...0
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