Guarantor Mortgages Explained

What is a guarantor mortgage?

Guarantor mortgages are a complex area, so it’s often wise to seek advice if you would like to consider this as an option. With this type of mortgage, it’s often a parent of family member who acts as a guarantor on the mortgage. The lender may take their income into consideration, and they’ll be expected to pay if you can’t. They’ll sign a legal contract with your mortgage lender to arrange this.

Pros and cons of guarantor mortgages

This type of mortgage is particularly useful for first time buyers who may be struggling to get onto the property ladder. Perhaps your income isn’t high enough or you can’t afford the type of property you need. Although guarantors don’t own a share of your house, they will be liable if you miss a payment, so they must have the money to pay. It can also help you to borrow a higher amount if their income is included in the assessment, and sometimes they can just be a guarantor for the extra amount of mortgage above your income. This type of mortgage is a huge commitment for any guarantor, whose own property may be at risk should they be pursued for payments. It’s important each party fully understands the implications before doing this.


After a certain number of years, if your mortgage debt has reduced enough or your income is much higher, you may be able to remove the guarantor from the mortgage. This will be after a set term and need approval from the lender. You may also want a better deal on your new individual mortgage, by remortgaging elsewhere.

When looking to apply for any type of mortgage, getting professional, impartial advice can help you get the best mortgage product for you. Find a trusted mortgage adviser in your local area here.