Expertise on guarantor mortgage

Jess0956

Hi,

Would really appreciate someone’s help and expertise on having a parent as a guarantor on your mortgage?

I’m a first time buyer me and my other half are looking to buy a property our parents have an equity of 500,000 + and we are shortfall of around 60K.

Not sure exactly how it works?

DCFC79

Jess0956 wrote: »

Hi,

Would really appreciate someone’s help and expertise on having a parent as a guarantor on your mortgage?

I’m a first time buyer me and my other half are looking to buy a property our parents have an equity of 500,000 + and we are shortfall of around 60K.

Not sure exactly how it works?

What arent you sure about ?

I suspect it will be along the lines of

If you fail to pay the mortgage 1 month your/her parents will be asked to pay it.

Are you sure you want to involve a guarantor ?

Why not use 1 of the help to buy schemes ?

Maybe consider a cheaper property.

amnblog

Guarantor mortgages are not about what your parents own. They are about their income supporting yours.

There should be several ways to approach this.

Consult a good Mortgage Broker.

Thrugelmir

Jess0956 wrote: »

I’m a first time buyer me and my other half are looking to buy a property our parents have an equity of 500,000 + and we are shortfall of around 60K.

Then you need to lower your sights and look for a property that is affordable. Alternatively continue to save for a deposit \ wait for your incomes to rise.

ACG

£60k on a £500k Mortgage is a very small amount. How many lenders have you tried on a conventional Mortgage? You might find a lender who can take a flexible approach will lend what you need.

But as has been said, guarantor Mortgages means the lender will assess your income and your parents income against everyones outgoings and then decide on what they can lend.

Thrugelmir

ACG wrote: »

£60k on a £500k Mortgage is a very small amount.

The £500k is equity that OP thinks can be used as security against their shortfall.

ACG

Thrugelmir wrote: »

The £500k is equity that OP thinks can be used as security against their shortfall.

oops. Misread it.

Jess0956

We have 35K deposit.

We spoke to a broker and he origanilly told us we could afford 350K and adviced us if we did find something around that mark we could afford however this was incorrect. We have found recently a lot of properties were we live no one has been buying and have been sitting on Rightmove for 6 months plus so we tried our luck and put an offer of 350K towards a flat that was marked up much higher and was accepted. Only to be told afterwards that we couldn’t afford it so right now I’m trying to look at different options of us to be able to buy this property. So I thought using our parents as a guarantor as they have a lot of equity in there property and our broker has turned around to tell us this is not an option. So I need a second advice from someone please?

Jess0956

We have 35K deposit.

We spoke to a broker and he origanilly told us we could afford 350K and adviced us if we did find something around that mark we could afford however this was incorrect. We have found recently a lot of properties were we live no one has been buying and have been sitting on Rightmove for 6 months plus so we tried our luck and put an offer of 350K towards a flat that was marked up much higher and was accepted. Only to be told afterwards that we couldn’t afford it so right now I’m trying to look at different options of us to be able to buy this property. So I thought using our parents as a guarantor as they have a lot of equity in there property and our broker has turned around to tell us this is not an option. So I need a second advice from someone please?