You have done all the hard work and saved a healthy deposit for your new home to learn you cannot get the mortgage you need because your income does not stretch to meet the lenders standard affordability criteria. It is a common occurrence and lenders recognise this dilemma which is why ‘guarantor mortgages’ were introduced.
A guarantor mortgage works in exactly the same way as a normal mortgage. The only difference being if you cannot meet the mortgage repayments the guarantor becomes responsible for the debt. The lender will need to see evidence the guarantor can afford their own commitments as well as repayments on the guarantor mortgage. In some instances the lender may also want to take a charge on the guarantor’s property.
If you have had difficulty getting a mortgage or have a parent or relative willing to be a guarantor feel free to click here to contact us to arrange a free 15-minute consultation where we would be happy to talk you through what may be possible.
Please Note: The Mortgage Xchange is a partner of Scott & Goose LLP who are directly authorised by the Financial Conduct Authority under reference 661183. Your home may be repossessed if you do not keep up repayments on your mortgage.