Guarantors & mortgage applications

[Whathefisgoingon]

DP and I are hopefully going to be starting the process of buying our first home later this year / early next year.

I’ve just been asked to renew my guarantor agreement for a relatives rental property. I’ve been their guarantor for a few years, never any issues and there won’t be moving forward (close relative, other family abroad or they’d simply act as the guarantor)

The agreement needs to be renewed and won’t end until end of 2022. I don’t think this would affect any mortgage applications for us, but I’m not entirely sure. Does anyone know?

Legally, you need to declare it in your application: it’s a commitment to a potential outgoing which could affect your ability to pay your mortgage if you also had to pay your relative’s rent. Lenders will assess the risk on their own criteria.

I think this would probably affect your application, best thing to do is find a mortgage advisor and ask them before committing.