Guarantor on mortgage

B

buyaka

Registered User
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I've been refused a loan with a couple of mainstream lenders and am being pushed down the subprime route by a broker.

If my parents were to go guarantor on the mortgage, would a mainstream bank then grant the mortgage?

I'm self employed, separated and the reason I've been refused by the mainstream banks is because firstly I'm self employed and secondly there were arrears on my joint mortgage with my previous partner which werent entirely my fault.

Have my business account with one of the mainstream banks which shows consistent lodgements over the last four years.

Looking to borrow 320k and have 140k in cash.

Would it be worthwhile approaching my own bank and explaining the situation before going down the guarantor route?

Any help greatly appreciated!
 
Definately contact your branch with that much in cash and your record it's worth a try. best of luck with it
 
buyaka said:
Looking to borrow 320k and have 140k in cash.
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While borrowing less will help lenders will primarily look at past credit history and your ability to service a particular loan amount when assessing your application.
 
As per ClubMan's points, and the lender will also take your NDI into account including your separation agreement and number of dependents etc.

Are your parents working? Its worth talking to your lender and explaining your previous history of arrears which along with giving them the option of guarantors may make them look more favourably on your application.

If they won't approve 320K ask them how much, if any, they would consider lending. If they decline the application then look at the other options. Its worth talking to your high street lender at least.
 
ClubMan said:
"NDI" = non disposable income I presume? :eek:
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I just have to ask what part of income did you think was "non disposable" ????
It just appears that all my income is disposed very quickly each month !!!!!
 
Regardless of the previous credit history issues and the record of lodgements with the business account..... just a couple of quick questions.

How do your trading accounts look? Is your declared income/taxable income sufficient to service the requested mortgage (and any possible maintenance payments)?

As previously noted by PM1234. Are your parents working? Do they add any value to application?

These will be the key factors in deciding how much of a mortgage you will be approved for.
 
"If my parents were to go guarantor on the mortgage,"

Do your parents want to be guarantors? Do they understand the consequences of being a guarantor? It is a heavy burden to put on them - if you cannot make your repayments.

mf
 
It would be a good idea to apply for the mortgage in your parent`s branch. Their guarantee is worth most their & so your chances of getting a mortgage would improve.
 
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