Joint borrower sole proprietor/guarantor mortgages

[mittensonelastic]

Hi, quick question for mortgage brokers (@herbyhippo and anyone else!)

DC is desperate for a place of their own, but is on an apprenticeship so on minimum wage for the next three years after which their salary will increase substantially.

We've seen a brand new house which will be ready in 9m time, which offers a 20% discount to first time buyers, but the mortgage will need to be in DC's name to qualify for this.

DC has managed to save a substantial deposit, can afford the monthly payments (wants a 5 year fixed ideally so they will have been earning full wage for a while before the fixed rate ends) but can't pass the affordability calculator on their own.

I'm happy to help out, either with a joint borrower sole proprietor or guarantor, but don't know much about how these work nowdays (I used to work in mortgages but left the industry 10 years ago).

Are there any issues with these type of mortgages - for example, with it being a new build? Will the term be based on my age? Any other issues I haven't thought of...!

Thanks

If you're being guarantor, it's as though you are
taking the mortgage our for yourself, so there may be a limit on how long you can have it over depending on your age.

Most JBSP lenders will base their maximum term on your age so can often only offer a term that makes the repayments unaffordable. Take a look at Generation Home (via a mortgage broker), they take a slightly different approach, not the cheapest but certainly a bit more flexibility.