Guarantor mortgages - for family only?

Catriona_P

I'm hoping to buy a house (not a first time buyer but trying to get back on the ladder following a divorce), I have a half-decent job and a reasonable deposit so have managed to get a mortgage in principle but its not quite enough to get a house thats suitable for the needs of my family.

I have a close friend who has now offered to act as a guarantor for a mortgage for me so I can afford something in a higher price bracket - they're well off and have paid off their mortgage so in a comfortable position to do this. Since my MIP repayments are much less than the rent I pay currently and I have savings etc in theory I could manage the repayments no problem even with her as a guarantor. Obviously we would both need to take financial advice and have a legal agreement in case something happened to damage our relationship.

The products I've looked at online however seem to say that only family can be guarantors - is there anywhere that would offer me such a mortgage with a friend or would it be wasting our time? Does anyone have any advice please?

ACG

Why would you get a Mortgage in principle if you did not pass the affordability calculations for what you needed?

Lenders base the affordability on rates of around 7-8%, not what you are applying for as rates WILL rise in the future.

There are a few things you can do to try and get what you need without a guarantor:
Extend the term.
Clear that £2,000 you have in your signature? (Lower deposit but lower debts might give you the extra you need).
Try a different lender - when I say that, I mean do the affordability calcuators, do not do credit checks.
Lastly, try a broker.