Guarantor

[Babooshka]

What can a guarantor do for you in these strange times? Does anybody know what if indeed any banks accept these and how much more does it entitle you to get?

Also if the guarantor is retired but owns various properties outright and so is worth a few million on paper, will this be acceptable to the banks or do they have to be in employment?

Any help appreciated.

 

[dewdrop]

While i do not know the attitude of mortgage lenders to guarantors in the present climate it is advisable to consider carefully before signing. You will be fully liable for the mortgage if problems arise. Also if you are advanced in years what happens on your death. I would strongly advise a chat with your own solicitor before signing anything. I recall some years ago parents were often told that there should be no problem in getting released after a few years. Sadly this is not now the case.

 

[agapanthus]

One lender will take guarantors but must have minimum income of 50k, preferably earned i.e. not retired. All the property in the world dont matter and it would also depend on what outgoings the guarantor has, do they still have mortgage themselves etc. Very difficult these days.

 

[NorfBank]

The guarantor policy of the different lenders vary greatly.
Some lenders will need the guarantor to have a minimum income, some will look at net worth, while others require the guarantors net income to be strong enough to make up the mortgage shortfall.
As for the amount of the shortfall allowable, again this varies from bank to bank and is usually on a case by case basis.
Life cover is usually required for the guarantor but again it's case by case.
Finally most lenders have a maximum age of 60 but some have, you guessed it, a case by case policy.
Basically if the guarantor is extremely strong the bank will be happy to do all it can to please the guarantor, if the guarantor is borderline then the mortgage is likely to be declined.

 

[dmv]

how much more does it entitle you to get?

You don't get anything you're a Customer of the Banks, buying Money and you don't "get" any more than you "get" when you go down to the Shops and paye out for a pint of Milk.

 

[LDFerguson]

You don't get anything you're a Customer of the Banks, buying Money and you don't "get" any more than you "get" when you go down to the Shops and paye out for a pint of Milk.

I don't understand this comment. Babooshka was asking how much extra borrowing you can qualify for if you have a guarantor.

 

[Babooshka]

Thanks guys.

And yes LD Ferguson, that is what I meant, Im not quite sure I even understand dmv's comment tbh.