Anyone know how guarantor mortgages work?

[RBKB]

Just that really.... my DD wants to buy in a couple of years. She will be earning around 30k and have a 25% deposit, would she manage to borrow 160k-ish with me as a guarantor? I earn around 41k. Husband may be made redundant in next 5 years so am not factoring him in. We will be mortgage free.

We have a higher income than you but found that we couldn’t get a guarantor mortgage to help ds. I would be very interested if someone comes on and knows of companies that do them.
We were mortgage free , and ended up remortgaging our house to pay for a flat for ds. Obviously this is not risk free but it has worked out well for us .

Where and what is she buying for 160k? Is she looking at starter flats or going straight to an aspirational house?

if she’s on 30k can she afford a 160k mortgage? If she can’t pay can you afford the liability?

I got a guarantor mortgage 30 years ago, but I bought a small flat and negotiated an interest only/offset mortgage as I had no dependents.

best plan is to speak to the banks and see what they will offer. I think joint mortgages are more common that guarantor mortgages now anyway.

Thanks both...no she is looking at tiny 1 bed flats...we are SE (not affluent area but still...200k buys you a tiny place!!!) Yes she can just about afford the repayments. It's so rubbish for this generation :(

Your best option is to talk to a whole of market broker
I do know a few companies who offer a guarantor type mortgage but they go via brokers so that would be your best bet
They are usually quite restrictive on age, well the age of the guarantor at the end of the term but can't give you any solid details as honestly don't know what the criteria is at the moment

DON'T TOUCH IT!

Walk away now.

Legally it's YOUR mortgage, not your daughters.

Do you want another mortgage?