Guarantor for mortgage

ItalianScot1983

Hi everybody I’m an italian living in Scotland and i have a stupid question fo you all. I’m waiting for the Scottish Scheme LIFT to help me buy my first house. This year, this benefit it’is delayed, should have started in April but so far there are no news yet, probably for all these budget cuts from the government. because i can’t afford to buy the house without a little help from the government, i was thinking to ask my brother to be a guarantor but he has a bad credit score and two loans so i think he can’t be taken in consideration by lenders. another option could be my father but he is italian living in italy… what do you think? can my father or my brother can be a guarantor? 

Grumpy_chap

ItalianScot1983 said:

Hi everybody I’m an italian living in Scotland and i have a stupid question fo you all. I’m waiting for the Scottish Scheme LIFT to help me buy my first house. This year, this benefit it’is delayed, should have started in April but so far there are no news yet, probably for all these budget cuts from the government. because i can’t afford to buy the house without a little help from the government, i was thinking to ask my brother to be a guarantor but he has a bad credit score and two loans so i think he can’t be taken in consideration by lenders. another option could be my father but he is italian living in italy… what do you think? can my father or my brother can be a guarantor? 

Why do you need a Guarantor?

kingstreet

A non-UK resident can't. Your brother can, if a lender will accept him. The product is now joint borrower, sole proprietor (JBSP) and your guarantor is simply a joint borrower on your mortgage who isn't a part-owner of your home.

LIFT is shared equity. How is a guarantor or JBSP option going to replace the shared equity? Increased borrowing power?

ItalianScot1983

kingstreet said:

A non-UK resident can't. Your brother can, if a lender will accept him. The product is now joint borrower, sole proprietor (JBSP) and your guarantor is simply a joint borrower on your mortgage who isn't a part-owner of your home.

LIFT is shared equity. How is a guarantor or JBSP option going to replace the shared equity? Increased borrowing power?

yes, this was my aim, to increase my borrowing power.  i earn £27000 ish per year and now i’m paying alone a rent of 927 which is quite high but i’m just aim to get a monthly mortgage pay around £800 but my borrowing power don’t let me get the access to 160k/170k but my top borrowing could be 120k ish and i need more for a house here in Edinburgh. with the LIFT last year I could have buy a house of 180k and borrow just the 60% from lenders. 

ItalianScot1983

i forgot to say, the guarantor just if i can’t have the chance to get the LIFT. anyway i think one day will be released from the government, i hope so 😅