How can you be a guarantor for a mortgage?

[loooopo]

I am thinking if helping my younger brother who works on a contractual basis and has a substantial deposit - can he just borrow x5 his current earnings and then I guarantee it against my property and earnings?

He might not need a guarantor if he has accounts going back 3-5 years that show he regularly earns such at whatever level. 5x mortgages aren't unheard of. To become a guarantor, you would have to be credit-checked and often have to go through the application procedure yourself - you would need a reasonably high level of discretionary spending because, in theory, you could end up paying your and his mortgage simultaneously. I would suggest that he spoke to a good broker first to see if he can go it alone.

I would be very wary of doing this for anyone that I didn't know and trust very well - and I would include siblings in this. Possibly I would do it for my children but only if they did not have even a hint of a grey mark on their credit records. I would want some legal agreement in place before I agreed.

Can you be a guarantor for a mortgage? Surely they will just refuse him if they don't think he can make the payments/borrow as much as he wants, not ask him for a guarantor. However, if you can you will be making yourself liable for the payments over the whole term of the mortgage! Has he spoken to a broker?

Have a look at Barclays,they have some good schemes for guarantor mortgages, especially family ones.