Family (Guarantor) mortgages

Guarantor mortgages

A Family or Guarantor mortgage, offers a useful way for families to help family members make a property purchase. Borrowers who are unable to demonstrate affordability on their own, perhaps due to their age or credit history, or because their current income or assets are insufficient, can use this vehicle to receive support from a family member.

There are a number of different ways to arrange a Family Mortgage including:

Traditional guarantor

The borrower evidences they can afford the repayments from their own income but may not have built up a sufficient credit history, perhaps due to their age. Parents or other family members can 'guarantee' the mortgage for the borrower.

Enhanced contribution guarantor

Where a borrower is looking to purchase a property that they would not be able to afford from their own income, other family members can provide a guarantee along with a commitment to 'top-up' the borrower's income to evidence affordability.

Multi-family guarantor

Where two or more people are seeking a mortgage and require either a guarantee or additional contribution from more than one family.

Sibling guarantor

Where siblings are purchasing a property together, parents or other family members can guarantee the mortgage, or provide contributions, or both.

Release equity from an existing property

Though not a guarantor mortgage, clients can release equity from an existing property, typically the parental home, to provide a deposit for a child or grandchild.

Multi-party mortgages

Parents or other family members can be a ‘named party’ on the mortgage so that their income is used to assess affordability. This allows for higher levels of borrowing than might otherwise be the case. The named party can be removed from the mortgage once the borrower’s income increases to evidence affordability on their own.

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All borrowing is subject to status and is available to persons of 18 or over. Security might be required for borrowing in the form of a charge or standard security over land, or other forms of security over your investments or other assets.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.