For a lot of would-be buyers, the barrier isn’t wanting a home — it’s the deposit or the income needed to borrow enough. A guarantor mortgage is one way family can help bridge that gap. Here’s how they work.
The basics
With a guarantor mortgage, a family member (often a parent) agrees to be responsible for the mortgage if you can’t keep up the payments. That added security can help you borrow when your own deposit or income alone wouldn’t stretch far enough.
The guarantor usually backs this up in one of two ways: by using their own property or savings as security, or by formally agreeing to cover the payments if needed.
Who they suit
- First-time buyers with a small deposit.
- Buyers whose income doesn’t quite support the loan they need.
- People with limited credit history who need the extra reassurance for a lender.
What the guarantor needs to understand
Being a guarantor is a serious commitment. If the borrower can’t pay and the guarantor has put up their home or savings as security, those can be at risk. Anyone considering it should go in with their eyes open and ideally take advice first.
The alternatives worth knowing about
Guarantor mortgages have become less common, and there are now several family-assisted options that may suit better:
- Joint Borrower Sole Proprietor (JBSP) — a family member’s income helps you qualify, but they’re not on the property’s title.
- Springboard or family deposit mortgages — family savings are held as security for a set period.
- Gifted deposits — family simply gift towards the deposit.
The right route depends on everyone’s circumstances. We’ll talk through the options with you and your family and find the one that helps you onto the ladder with the least risk. Get in touch to explore it.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We charge a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £149 to £499 and this will be discussed and agreed with you at the earliest opportunity.
