Guarantor mortgage

[Sunflowerx]

Can anyone give me some advice on getting a guarantor mortgage?

My husband earns 35k a year, I earn around 8k as I work part time and his mum and dad have offered to be guarantors for us to get our first house due to us both having not that great credit. Their house is worth around 350k, so would it be do able for us to get a mortgage using them as a guarantor? And is there also a rough amount we'd need for a deposit or could it be done solely on the value of their house?

I'm an absolute novice when it comes to anything financial but have become much more responsible since becoming a mum and having a second on the way so I'm really desperate to get the best for my children but I just think we need a little help to get us started!

You’d still need a deposit and to pass affordability checks. How much depends on the price range of homes you are considering. Usually people go to a mortgage broker and based on what deposit they have saved plus their income, the broker advises the value Home you can afford.

His parents being guarantors doesn’t buy you a house. It really is in case you two fail to pay the mortgage, then the guarantors are legally liable to pay the mortgage in your place. The value of their home, or equity, is just part of their affordability check to ensure they can act as guarantors.

They'd be guaranteeing your payments, not showing they've got a house so you can rely on the, honest - their house wouldn't be in the equation, it'd be whether they could show they could pay your mortgage.

Assuming they're older, you'd be limited to how much they can afford and how many years until they reach retirement.

Your credit being not so good would also be a factor - lenders still may choose not the lend to you, and it's a massive risk for your parents if you've defaulted on payments before - do they understand they'd be responsible for making the entirely monthly payment if you don't?

As you can tell, I'm not a fan of this plan. Nothing makes families fall out more quickly than money.

We're moving back into their house this month to help us to save after renting for 3 years and having no luck saving!

May try and get in touch with a broker for some advice for a start to put a plan in place to us cause we don't plan to move for around a year!

So you could probably borrow around 200k ish?

Do you have a deposit? If not, perhaps rather than them be guarantors they might be able to help with a deposit, that could get you a better LTV borrowing rate and might compensate for your poor credit rating (do you actually have a poor rating or are you assuming that?)

The value of their house doesn’t matter because presumably you don’t want them to sell it to release their equity to pay your mortgage!

How much deposit do you have and how much do you want to borrow? The bigger question is whether they can cover your monthly payment of you default.

This is such a bad idea

Based in 4.5 x joint salary. You could borrow approximately £193k. It would be best to have at least a 20 percent deposit so appox 20k. How much are houses in the area you would like to buy.

Also having children lowers the amount they could lend.

We investigated guarantor mortgages when my dd was looking to buy. The lender would only lend over the period until we reached retirement age making dd's monthly payments so high it was unaffordable. She secured her mortgage on her own and got help with a bigger deposit.

We live in the north west so can get a 3 bed semi which is what we'd like for around 140k/150k

It's definitely something we'll have a long think about while we get saving for a deposit, but I feel we're definitely doing the right thing by moving back with the in laws to help us save a bit!

You can easily borrow what you need then, why do you need a guarantor?