- Joint Applicant Sole Proprietor
- No need to go on Deeds
- No maximum age for residential & buy to let mortgages
- From 10% Deposit
- No Credit Scoring Application for Some Lenders
- Common Sense Underwriting
A guarantor mortgage is typically arranged where a relative (sometimes a friend) wishes to help guarantee the affordability of a mortgage.
This is often where the amount of mortgage required would not necessarily have been achievable in the name of the mortgage applicants alone without the guarantor. Guarantor mortgages are sometimes called “Joint Applicant Sole Proprietor” where one or more persons go onto the mortgage application but fewer go onto the ownership of the property as registed on the Title Deeds. A typical example is parents buying with son/daughter where parents and son/daughter go onto the mortgage application but only son/daughter onto the Title Deeds.
The usual scenarios where guarantors are typically used are in the case of parents acting as guarantor for children who may be studying or who have just started their career where their income is expected to grow, but they can’t yet afford the mortgage amount they require on their own. Alternatively, it could be children acting as guarantor for their parent’s mortgage.
Unfortunately, guarantors cannot be used to make up for the fact that one or more of the mortgage applicants have an adverse or an impaired credit history. In these scenarios, Guarantors can still be used to assist with the affordability of the mortgage, however the lender would also need to be comfortable with the credit history of all applicants before deciding whether to proceed.Read More >>
In most situations a Guarantor will not be required to go onto the Title Deeds of a property they are guaranteeing the mortgage for. This has the benefit that the guarantor will not usually be subject to Stamp Duty on the purchase of the property or Capital Gains Tax on its disposal.
The mortgage guarantor or guarantors will, however, be jointly and severally liable for the whole mortgage debt with the applicants. This means that if the applicants fail to meet the mortgage payments then the guarantor(s) credit file will be affected in the same way as the applicants.
Additionally, any guarantor will usually have the monthly mortgage payments they are guaranteeing treated as a commitment. The impact here is that should the guarantors wish to take out a mortgage or other credit in their name, the mortgage they are guaranteeing could affect the amount the wish to borrow in the future.
At RockHopper we can look to assist clients looking to act as a mortgage guarantor.
We appreciate everyone’s particular situation is unique, which is why we look at every enquiry on a case by case basis.
If you would like to see whether we can help, do get in touch for a free no obligation quotation.