How Do Guarantor Mortgages Work?
- When getting a mortgage, some lenders offer you the choice of getting a guarantor mortgage. In this context, a family relative will take on the liability of the mortgage, without having any share or interest in the property.
- To qualify as a guarantor, you will need to own a property of your own, or have savings, and have a good credit score. Other conditions may be imposed by some lenders.
- If the borrower is unable to make the monthly repayments, the guarantor is liable to help.
What is a guarantor mortgage?
Can you get a mortgage with bad credit but a guarantor?
- You don't have a big enough deposit - some guarantor mortgages allow you to borrow up to 100% of the property.
- You don't earn a lot - the amount you can borrow depends on your income, a guarantor may enable you to borrow more.
- You have a poor credit score - if someone with a good score will guarantee your mortgage, lenders may be more inclined to lend with you.
- You don't have enough credit history - if you have no history of borrowing for example if you're young or new to the country, lenders don't have enough evidence that you'll repay yet.
Who qualifies as a guarantor?
- Property of their own (or savings)
- Good Credit
- Be a family member
- Receive independent legal advice
- Have paid off 50-100% of their mortgage
How do guarantor mortgages work?
What happens if I can't pay my guarantor mortgage?
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Is a guarantor mortgage a good idea?
- Entering into a financial agreement can put a heavy strain on family relationships.
- Both the borrower and the guarantor risk their credit rating if the borrow fails to keep up their payments.
- The guarantor could lose their savings or their home if the borrower defaults and the property has fallen into negative equity.
- If the guarantor's circumstances change, the additional financial burden may be too much for them.
- If the guarantor is securing the loan against their savings, they will not have access to this cash, even in an emergency, until the terms of the mortgage release them.
If you cannot find a guarantor for your mortgage, you may be able to buy on your own, with a Discount Market Sale Mortgage, instead.
Get reliable impartial legal advice on your mortgage
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the self-published author of the first-time buyer guide: How to Buy a House Without Killing Anyone, and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Amanda Ambler is a highly accomplished conveyancing specialist with over 15 years of dedicated experience across residential property law, legal compliance, and practice management. Having held senior roles, including Head of Legal Practice and Head of Conveyancing at established UK law firms, Amanda possesses a profound, hands-on understanding of the technical intricacies of the property market.
As the designated Legal Content Reviewer for SAM Conveyancing, Amanda ensures that every guide, legal update, and resource published meets the absolute highest standards of accuracy, regulatory compliance, and factual integrity. Her rigorous review process guarantees that complex property legislation and industry processes are communicated clearly, transparently, and safely for home buyers and sellers alike.
