Guarantor mortgage?

[Dayindayoutdayin]

Aibu to think there is no consistent info on these?! Does anybody know in simple terms how they work? We currently have a mortgage and want to move but can't borrow enough despite being able to afford much higher repayments. Does a guarantor mortgage mean you can borrow more money? Confused 🤔

I mean, I understand it means guarantee the mortgage, i.e. A parent or something but does it mean the bank can lend you more money if it's guaranteed? Thanks!

My broker said they aren't really done anymore

They were designed for those who simply could not get a mortgage due to bad credit history. The guarantors income was only taken into consideration in terms of could they afford the mortgage on their own. You couldn't borrow more.
To borrow more you need a higher income. You could have someone else on the mortgage application and their income will be added to yours. It's a legal minefield though as they will automatically have an interest in the property and you would have to speak to a solicitor about it. Go see a broker.

This is similar: www.barclays.co.uk/mortgages/family-springboard-mortgage Basically lets your family lodge some security in lieu of deposit.

Thanks everyone, really helpful. Definitely going to see a broker.

Delilah - you mentioned about someone else being added to the mortgage, is that permanent or could you get them removed over time? I.e. My parents would happily do this to allow us to move up the property ladder but we wouldn't want them on the mortgage or having an interest in the property (they totally agree, they wouldn't be making any payments etc)?

If someone is added to the mortgage you can at a later date have them removed IF the bank consider that those left on the mortgage can cover the repayments. I am not sure though how many people can be on a mortgage.

The idea of a guarantor is that if you default on the loan the bank can and will go after them for payment.

Your best bet is to go and see a mortgage broker and for you and your parents to get independent legal advise.

We had one in 2008 when we needed to borrow more than our then incomes would allow.

The term was restricted to the guarantor's retirement age, so it was for fewer years than we would have liked.

We've since remortgaged.

@Dayindayoutdayin
You can have up to four people. Please bear in mind that the age of all applicants is taken into consideration when looking at term. If your mum goes on and she is 60 years old for example, a lender will only go to her retirement age (some will allow up to 75 years old). I don't know about all lenders, but Santander only consider 50% of the income for third and fourth applicants.
As butterfly said, you can have them removed later if it is deemed you can afford the remaining mortgage.