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Mortgages With A Guarantor

Deedle Finance can help you access the best mortgage rates. Securing your dream home is still possible, even if your income isn't enough to qualify for a mortgage.

We specialise in connecting home buyers with lenders who offer guarantor mortgages, ensuring you can achieve homeownership with the support you need.


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How To Get A Mortgage With A Guarantor

Step 1
Complete The Quick And Easy Online Form
Simply fill out our user-friendly online form with details such as your name, postcode, contact information and your specific requirements. This will take less than 5 minutes to complete.
Step 2
Receive A Callback From Our Dedicated Team
A dedicated member of the team will promptly reach out to you within a couple of minutes via phone call to guide you through the process of obtaining your mortgage with a guarantor.
Step 3
We Check You Are Eligible
We will request additional information, including details about your annual income. We can then calculate your borrowing capacity and find the most favourable rates available.
Step 4
You Get The Best Mortgage Offer
We’ll search our extensive network to match you with the ideal lender that meets your specific borrowing requirements. We can start your mortgage with a guarantor journey without delay.
mortgage-with-a guarantor

What Is A Mortgage With A Guarantor?

A mortgage with a guarantor is a type of home loan that allows individuals with limited income or credit history to qualify for a mortgage by involving a guarantor. A guarantor is typically a family member or close friend who agrees to take on the financial responsibility if the borrower is unable to make mortgage payments. The guarantor provides an added layer of security to the lender, giving them confidence to approve the mortgage application.

This arrangement can open doors for homebuyers who may not meet the strict lending criteria on their own, enabling them to access favourable mortgage terms and achieve their homeownership goals. It’s important to note that the role of a guarantor involves a significant commitment, as they become legally liable for the mortgage in the event of default.

How Does a Mortgage With A Guarantor Work?

A mortgage with a guarantor works by involving a third party, typically a family member or close friend, who guarantees the loan repayment in case the borrower is unable to fulfill their mortgage obligations. The guarantor’s role is to provide additional security to the lender, assuring them that the mortgage payments will be made even if the borrower encounters financial difficulties.

To qualify for a mortgage with a guarantor, the borrower typically needs to meet certain criteria, such as having a lower income or a limited credit history. The guarantor, on the other hand, must have a stable income, good credit and sufficient equity in their property (if required by the lender).


Who Can Be A Mortgage Guarantor?

A mortgage guarantor is typically someone who has a close personal relationship with the borrower, such as a family member or a trusted friend. While the specific eligibility criteria may vary depending on the lender, there are some general considerations when selecting a mortgage guarantor including:

  • Financial Stability: The guarantor should have a strong financial position, including a stable income and good credit history. Lenders typically assess the guarantor’s ability to meet their own financial obligations while taking on the additional responsibility of guaranteeing the borrower’s mortgage.
  • A Form Of Collateral: The guarantor should have sufficient equity in their own property (if required) or other valuable assets that can be used as collateral. This provides the lender with an added layer of security in case the borrower defaults on the mortgage.

It’s important to note that being a mortgage guarantor is a significant commitment. The guarantor is legally bound to fulfill the mortgage obligations if the borrower is unable to do so. Therefore, it’s crucial for the guarantor to fully understand the risks and responsibilities involved before agreeing to act as a guarantor.

What Types Of Guarantor Mortgages Are There?

Property As Security

  • The guarantor uses their own property as security for the loan

  • If the borrower fails to make mortgage payments, the lender can seek repayment by placing a charge on the guarantor’s property

  • This option is beneficial when the guarantor has significant equity in their property

Savings As Security

  • The guarantor places a sum of money in a separate account, which serves as collateral for the mortgage

  • If the borrower defaults on payments, the lender can use the savings to cover the outstanding amount

  • This option is suitable when the guarantor has accessible savings that can be held as security

Get The Best Mortgage Rates With A Guarantor

Why Should I Use Deedle Finance To Find My Mortgage With A Guarantor?

Deedle Finance specialises in securing mortgages with guarantors. Our experienced advisors have in-depth knowledge of the market and a vast network of lenders who offer guarantor mortgage options. We save you time and effort by searching multiple lenders, comparing terms and finding the best deals tailored to your needs.

Trust Deedle Finance as your mortgage broker to guide you through the process, making your mortgage journey seamless and successful.

What Happens If I Cannot Pay My Mortgage With A Guarantor?

If you find yourself unable to make your mortgage payments with a guarantor, it is crucial to address the situation promptly and communicate openly with your guarantor. In such circumstances, the guarantor becomes legally liable for the repayment of the mortgage. This means that if you default on the payments, the lender can hold the guarantor accountable for fulfilling the outstanding obligations.

Failure to make mortgage payments can have serious consequences for both you and the guarantor. It can lead to significant financial stress, damage to credit ratings and potential legal actions, including the possibility of repossession of the property.

Find The Cheapest Mortgage Deals With A Guarantor

Who Are Guarantor Mortgages Suitable For?

Guarantor mortgages offer a viable solution for those who need assistance in meeting the lending criteria or require additional support to access favourable mortgage terms, such as:

– First-time Homebuyers: Guarantor mortgages can be particularly beneficial for first-time homebuyers who may not have a substantial deposit or a well-established credit history. By involving a guarantor, lenders are more willing to approve the mortgage application, as the guarantor provides an additional layer of financial security.

– Individuals with Limited Income: Guarantor mortgages are also suitable for individuals with limited income or self-employed individuals who may find it challenging to meet the strict income requirements set by lenders.

With a guarantor’s support, borrowers can overcome these hurdles and secure a mortgage based on the guarantor’s financial strength. It’s important to discuss individual circumstances with a mortgage advisor to determine whether a guarantor mortgage is the right choice.

Frequently Asked Questions About Mortgages With A Guarantor

Can I Remove The Guarantor From My Mortgage In The Future?

Depending on the lender’s policies and your financial situation, it may be possible to remove the guarantor from your mortgage in the future. However, this usually requires meeting specific criteria, such as demonstrating a stable income and an improved credit rating.

Will Being A Guarantor Affect My Own Ability To Get A Mortgage In The Future?

Being a guarantor can potentially impact your ability to obtain a mortgage in the future.

When assessing your mortgage application, lenders consider your existing financial commitments, including the guarantee you’ve provided. This could affect your borrowing capacity or require you to disclose the guarantee to prospective lenders.

Can A Parent Be A Guarantor For A Mortgage?

Yes, parents are commonly chosen as guarantors for mortgages. Lenders often consider family members, such as parents, as suitable guarantors due to their close relationship with the borrower.

However, lenders may have specific eligibility criteria that the guarantor needs to meet, including income, creditworthiness and property ownership.

Can A Guarantor Be Released From Their Obligation Before The Mortgage Term Ends?

Releasing a guarantor from their obligation before the mortgage term ends typically requires meeting certain conditions set by the lender. These conditions may include reaching a specific loan-to-value ratio, demonstrating a strong credit history or making a certain number of consecutive mortgage payments.

Can I Apply For A Mortgage With A Guarantor If I Have Bad Credit?

Yes, having a guarantor can increase your chances of getting approved for a mortgage, even if you have bad credit. The guarantor’s strong credit history and financial stability can offset your credit issues and provide the lender with additional assurance.