Guarantor to get better/bigger mortgage

illmonkey

Hi,

We are looking into mortgages for a new place and have been advised that on current salaries we would be able to get a £190k - £200k mortgage maximum. The house that we want would be around £230k and we will have £20k deposit.

We know we can phisically afford to pay the mortgage on a £210k mortgage so is it wise to get a parent to be a Guarantor so that we can get the value we require for the place we like?

Many thanks

mightymouse

Hi

You say you can afford the repayments but in the event of illness, job loss, divorce / seperation, house price crash, children or death etc can your parents.

Your parents have everything to loose and nothing to gain, maybe if the lender would restrict your parents liability then that should be more acceptable to your parents who might want to help anyway.

If you put the facts to them they can make their own decision.

inch_high

the lender would also want to know what will change over the next few years that would allow to you afford the mortgage without the guarantor. A guarantor is designed to be a short term fix, for someone who'll be getting a payrise soon.

eg, a trainee solicitor currently on £20k who is about to qualify and will be earning £40k in 2yrs