Being a guarantor for family member's rent. How will this affect us applying for a second mortage?

jscan

Family member needs my husband & I to act as guarantor for their rent. They are unlikely to default on the monthly rent payments, so it is low risk to us.
However, we are looking into taking out a second mortgage, and worried whether being a guarantor will affect our chances of being accepted by a mortgage lender.

Are we worrying for nothing, if we are not likely to become liable for the rent?

Sandtree

Remember that if you do agree to it, and its executed properly, you have no way of cancelling it so potentially could go on for years.

There is no register of guarantors but if you are asked about other commitments and you are honest and declare it then the lender will consider the affordability of your new lending request in the circumstances that you are having to pay your relative's rent too

K_S

@jscan Generally speaking, being a guarantor on a tenancy agreement should have no impact on your mortgage options.

jscan

Thanks for your replies :-)