Helping families help each other - Guarantor-backed lending

Providing exceptional service to families is something that we take pride in at Hampden & Co. While guarantor-backed lending used to be a fairly common and readily available option from many banks, it is a service that our clients are grateful we continue to offer, and for ability to shape these arrangements in creative ways.

As an example of this, one of our Private Bankers was in conversation with her client who mentioned that her sister was having trouble getting a mortgage. The issue was that having spent the previous year in further education, her sister was returning to work and although she had a number of fee-paying clients lined up, she had limited proof of income. However the Private Banker was able to provide a solution by setting up a mortgage where the older sister guaranteed the mortgage for her younger sister.

In a slightly different situation, one in which a guarantee was not ultimately needed, a client of ours who, is a senior solicitor, was looking to help refinance his son’s family home which he lives in with his wife and two children.  The son and his wife both work but did not have earnings at a level to support the mortgage required at the time.  Based on the father’s partnership income, along with income and assets from other sources, our Private Banker was able to arrange a 5 year, Interest-Only mortgage of £400,000 against a property valued at £600,000.  The mortgage is in all 4 names so no guarantee was required and there is a commitment to reduce the mortgage balance by £50,000 each year over the 5 year term of the borrowing.

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