sister going guarantor on mortgage

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bobaloulou

Registered User
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Hi

Would appreciate your thoughts on below

I am buying a house, my sister and her partner have agreed to go guarentor for me as i was just short of the house price.
Their names will be on the mortgage but not on the deeds.

I am coming very close to signing contracts and just want to be sure that them going gaurantor is a good idea.
I am confident that i can make the repayments myself,
Unfortunetely I had to go for the gaurentor option as i just fell short of the house price.

I am aware that if i am unable to make the payments then the bank would expect them to pay. I do not see them as a fall back option. i would sell rather then expect them to pay my mortgage

Anyway are there any implications i should bear in mind doing this?
Your views would be appreciated
 
You should negotiate with the bank that the guarantee will only be for the shortfall in what you would not qualify for based on your income and that should your income rise to a level that would qualify you for a loan on the amount currently outstanding at any time, that the guarantee would cease.
 
You should also have a read of these two Revenue press releases that may be relevant:
  • [broken link removed]
  • [broken link removed]
 
I have read those 2 articles, just to be clear am i correct in saying that because i am a FTB, and they are going as gaurantor with no vested interest in the house that i am exempt from Stamp duty.
Their names are going to be on the mortgage loan, but not the deeds

Im having mini heart attacks thinking i may be liable for stamp duty???
 
If you meet the criteria laid out in the press releases then your qualification for FTB rates of stamp duty should not be affected.
 
Had a mini heart-attack myself as was talking to two friends, (solicitor and accountant), and they swore that if your parents went guarantor on a mortgage then you were not classified as a FTB. Thankfully this post has put me straight.

These are people whose opinion i would normally respect as they hold a number of properties. I guess it goes to show that even people with experience still dont know it all when it comes to the infuriatingly complicated business of buying property....
 
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