Guarantor Mortgage Enquiry

Scooby_Saver

Hello All.

I have approx £25k equity in my HA flat. To move up the ladder I have been advised to enquire about a Guarantor Mortgage.

I know what I can afford to pay back monthly. My folks are in their late sixties, mortgage paid for and are willing to act as Guarantors to enable me to borrow a bit more. They appreciate if something was sorted they would need ILA and maybe a charge put over their house as cover.

The big question is if there any mortgages available for someone in my situation based on the above ? I have no loans, credit cards etc and just need an extra £20-£25k on top of what I could normally get. My basic working out (including fees etc) tells me I can pay okay.

Thanks :j

mightymouse

Hi

Who advised you to enquire re Guarantor mortgage?.

If your parents want to lend you £25k then thats up to them and they can raise this amount for you.

However giving your lender rights to all the equity in your parents property including repossession is to be avoided.

Scooby_Saver

I spoke to a mortgage broker earlier in the week.

It's an extra £25k I'd like on top of 3.5 or 4 x salary. With interest only repayments I can repay fine for a few years until my shares mature (in a long term scheme0 which would mean I could remortgage and bring repayments right down.

Who does Guarantor Mortgagors ?

maninthestreet

You havent actually told us of the exact amount you want to borrow, and what your annual salary is. It may be possible for you to borrow the money you require without having to turn to your parents for assistance.
Do your parents have enough income to meet the monthly mortgage payments for this mortgage? If not, then they should not act as guarantors - if the worst came to the worst, both your house and your parents' house may would be under threat if you could not meet the mortgage payments.

Scooby_Saver

I have approx £25k equity after fees.

I am after mortgage of up to £115k but know I can pay £500-£530 a month. i am on £20k basic.

No other loans to pay etc. Credit history is fine.

I would consider interest only repayments.

Thanks

kevinchapman82

Advantage would lend you £115K on their Flexishare product for £575 interest only, or £650 repayment. Based on your income, they would lend you more than that if you wanted it. You are unlikely to find a cheaper way than that.