Can I raise a mortgage with my father as a guarantor?

Posted on 1 March 2008

Are there any lenders who would allow me to raise a mortgage of up to £150,000 in my name only with my father as a guarantor? Although retired, he has no mortgage and can prove an income of £38,000 and myself of £21,000. Both of us have an excellent credit score and I would be also able to put a deposit of 25% of full purchase price down. Hope you can help.

Thanks

On your own, as you are putting down a 25% deposit, you could only really get to £100,000 with a normal mortgage (about 5x income) , so yes you would need some sort of guarantor mortgage to use your father's income too. His income is perfectly valid, as he should have evidence of his pension and investments income.

Most mainstream lenders offer guarantor mortgages, but as the terms and rates are all very different, (specifically around how old your father can be) so don't bother tackling this without a broker.   As well as asking your broker for a guarantor mortgage, ask them to look at Bristol & West's and Bank of Ireland's  'First start' mortgage, which allows you to use your father's income on slightly different terms.

If you would like to use Charcol, who are Fees-free and Whole of Market,  the number is 0800 358 55 60 www.charcol.co.uk

Best regards,

Katie

Category: Guaranteeing & buying with child

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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