Guarantor and First time buyer status

SarahM7

I am currently a first time buyer as I have never owned a property. I have been asked to be a guarantor for a family member to allow them to purchase a house.
If I decide to become a guarantor and help my family will that affect my first time buyer status?

I definitely want to maintain the status as I am looking to purchase a property in the near future and have a lifetime ISA towards a deposit.

Thank you

TrickyDicky101

Guarantor mortgages no longer exist (as I understand it) - what do (and which is effectively the same thing although somewhat more explicit) is Joint Borrower, Sole Proprietor mortgages.

This is where you would be a joint borrower but have no legal or beneficial interest in the property (and thus this would not impact your FTB status).

What it would do is hit your affordability for any future mortgage of your own you may seek.

Being a guarantor (in whatever form) has consequences - it is not a no risk option.

marliepanda

SarahM7 wrote: »

I am currently a first time buyer as I have never owned a property. I have been asked to be a guarantor for a family member to allow them to purchase a house.
If I decide to become a guarantor and help my family will that affect my first time buyer status?

I definitely want to maintain the status as I am looking to purchase a property in the near future and have a lifetime ISA towards a deposit.

Thank you

Your affordability will be affected. Unless your salary is HUGE and you only want a small mortgage, I'd run a mile...