Guarantor Mortgages

Ladyro

My partner and myself are wanting to buy our first house. My partner has a very good credit rating, together we earn a good amount for the size of the mortgage we want, we have just over a 5% deposit, however I have a very poor credit score which I am in the process of improving.

Because of circumstances we want to try and buy a house in the next few months, so ideally waiting for my credit score to improve or us save a larger deposit isn't really an option.

I have been looking into Guarantor mortgages. We possibly have a sibling who owns a house and may be willing to help us with regards to this. Does anyone have any experience with these types of mortgage and could share some advice please? Making our monthly payments is no problem so we wouldn't be putting our guarantor in a position where they would need to pay for us.

Westminster

Before you go down the Guarantor road (with all its extremely serious consequences for the guarantor - often misunderstood it seems), get copies of your 3 credit reference agency files for you and your husband in front of an independent mortgage broker as you may not actually require a guarantor mortgage.

Edit to add:

Making our monthly payments is no problem so we wouldn't be putting our guarantor in a position where they would need to pay for us.

Obviously everyone starts out with good intentions such as these, however, circumstances can and do change unexpectedly at the drop of a hat which can cause very significant financial risk to a Guarantor (and their home)

Senior_Paper_Monitor

Guarantor mortgages do not address adverse credit - they address lack of income.

As westminster says - get an experienced broker to go over your psotion and let them come up with the options.