Will they accept my retired mum as guarantor?

yved33

Hi, we are currently in rented accomodation but have found somewhere we would dearly love to move to. We were referenced with Maras and turned down due to our previous bad credit, but today, whilst trying to tidy up our credit file my hubby phoned Maras to find out why we were refused and the lady said they would check it again and this time they passed us! This was due to all our debts being paid off two years ago when we sold our house. The letting agents are taking property off the market for a few days but we have to find a strong guarantor, who owns their own home and has earnings of £20,000 or is living on independent means.:eek: My mum has offered to do this for us but although she owns her own home she is retired apart from a little part time job for my brother and she has the state pension and a private one from her working days. Do you think she would qualify??

Gingernutmeg

OH's father is retired, and we were told categorically that he could not be a guarantor, and that it would be a waste of money trying (we had to pay 60.00 per person who was credit checked). I suppose it's always worth trying, but I'd see if there's anyone else who's more likely to be accepted, especially if you're going to be charged for the referencing process.

PROFESSIONAL_LANDLORD

My mum has offered to do this for us but although she owns her own home she is retired apart from a little part time job for my brother and she has the state pension and a private one from her working days. Do you think she would qualify??

Your mother probably won't meet the desired criteria to be your guarantor , given her earnings, I never take OAPs as a guarantor.

margaretclare

Wouldn't it depend on her income and her own credit-worthiness?

Not all OAPs (hate that term!!!) are poor.

Margaret

sm9ai

I doubt it would be acceptable. Going back 5 years or so, when I needed a gaurentor for a rented place, my parents had around £250,000 to £300,00 in cash and assets but no income other than pensions and that wasn't acceptable.

I had to get one of my Brothers to be a gaurentor in the end which was really stupid as I was earning more money than him anyway???(He had just been in his job longer than me) The system is very strange.

barnaby-bear

PROFESSIONAL_LANDLORD wrote: »

Your mother probably won't meet the desired criteria to be your guarantor , given her earnings, I never take OAPs as a guarantor.

Standard ref checks use a formula of

30 times monthly rent should be less than annual income, one or two drop the multiple to 24 so to guarantee a rent of £500 per month you need an income of £15k (or £12k on the 24x)

trulysaintly

Hi there,

There could be a multitude of reasons why the OP's relative may not be acceptable to lenders.

One of the main areas many lenders have tightened up on over the last 2 years is lending into retirement.

Many lenders will not consider a potential Guarantor who is beyond retirement age unless income is sufficient to cover their own financial commitments in addition to the mortgage debt you are looking to take out.

For example, if your relative was looking to take out their own mortgage at say, age 63, lenders will only look at the genuine retirement income due to be recieved at age 65. Even then, they may well have restrictions on the length of the loan.

On this basis, if you were looking for a mortgage over 30 years, and your mother was already 67, risk-wise for a lender, it just won't work.

A Guarantor normally has to be a blood relative who has sufficient funds to fund your mortgage if you fall behind.

All the best.