We Want to Guarantee a Mortgage

NOWSE

Our daughter has had her offer for her first property accepted. Unfortunately her elation has been cooled because she can't borrow enough. The pay slips that she submitted to the broker had the word "acting" in front of her job title. Her salary in this acting role is some £8000 more than her contracted salary and potential lenders will only take the lower figure into consideration. I can understand their position but her manager had supplied her with a letter saying that she was unlikely to ever be on a salary less than her present one. She has been on the higher salary for the past 15 months. Unfortunately the national organisation that she works for tends to operate by promoting people into temporary roles or secondments.
My wife and I have therefore offered to act as guarantors for the mortgage but the broker has turned this down.
Please can somebody advise us how we can proceed from here?

Let_Us_See

It would certainly help if you explained why the broker was disinclined to go down this route. Was it age, insufficient income etc.

amnblog

To act as a guarantor you will need to have similar or higher income than your daughter and no significant outgoings.

Lenders see guarnators as supporting cases where the borrowers income can manage the vast majority of the lending - if the borrower is well short on affordability it does not work.

NOWSE

Let_Us_See wrote: »

It would certainly help if you explained why the broker was disinclined to go down this route. Was it age, insufficient income etc.

The broker didn't ask for any details. They weren't interested in the idea of a guarantor.

ACG

There could be guarantor options but chances are it will not be with the same lender as there are very few. It seems odd the broker has declined it outright but he probably knows more about you than we do.

Maybe speak to another broker?
Could your daughter extend the term over a longer period and get more that way?
Maybe go to another lender who may not need payslips? (Some just need the P60).

There are potentially a few other options but its difficult to say for sure without knowing more.

NOWSE

Thank you for your replies.
We've now sorted this out.