Guarantor Mortgage - poor credit

mrsmulac

Good Evening,


Wondering if anyone has any information/ advice about the following:


My partner and I are currently renting but would like to buy our own home.


We have both got defaults on our credit file within the last three years. I have cleared my debits via a Stepchange debt management plan (in May this year) and my partner has approx. £1500 to clear on his. We have no other financial commitments outside household bills.


I have a permanent employment contract and earn around £32000 per year. My partner currently earns around £13000 per year, but has been offered a new permanent role to start in the new year at around £21000 per year.


We haven't been able to save a deposit yet but as our financial situation has been improving we will be in a position to begin to save in the new year and we are aware of the help to buy ISA.


To speed up the process of buying (ie. missing out the time it would take to save a deposit/ save x number months worth of rent) a very wealthy friend has offered to guarantee a mortgage for us.


Is it possible to get a 100% mortgage with a guarantor?

We would really appreciate kind advice about this and are just hoping to gather information.

Pixie5740

It's not possible to get a 100% mortgage these days even without a guarantor. At an absolute minimum you'll need a 5% deposit. Possibly more depending on your credit files.

ACG

There are 100% guarantor mortgages but they need additional security and trying to combine that with bad credit - I cant see it happening.

If the adverse was registered 3 years or more then there are lenders who will look at it with a 5% deposit.

One for a broker with experience in adverse I think.

Thrugelmir

You need to convince lenders that you can manage your personal finances well. A HTB ISA will be a step in the right direction as well as giving your deposit a boost. .