Guarantors?

MoscowFlyer

Do lenders still allow for guarantors in order to give you a better rate? My wife is a full time housewife and I only earn £27k a year, so any proposed mortgage for us is going to be in the region of £135k if we're lucky. However, I also have a CCJ, albeit satisfied and 5 years old.

We comfortably pay off our current mortgage at £830 a month, the loan is £171k at 5.99% but this comes to an end shortly, but in any case we've got our place on the market and would like to move. The difference between now and wehen we got the deal is that my wife was in full time employment then, but now she looks after our boy it's just my wage.

My in laws would be happy to act as guarantor (We would need a mortgage for between £180k and £200k), but I don't know if this will do any good? Alternatively, my mother in law, who works full time, owns her house outright and has a large amount of savings, would be happy to do a joint mortgage with me, but because she doesn't live there will anyone accept an application on that basis?

We think we may have to rent for a year but have seen a place we like and are looking for any way around it so we can remain home owners.

Conrad

Really there are many ways of approaching this case, but you really need to take face to face advice. Guarantor is possibly the most unlikely route to succeed and any rates will be driven by your own credit rating.

In law could do as 'intended to move in'.

MoscowFlyer

Thanks, it's all quite confusing really as to what our options are, our current (fairly mainstream) broker have basically told us that the current average rate is 6.8% which, given we're on 5.99% at the moment, would be too much for us anyway. I thought it was a headache last time round, it's nothing compared to now though!