Can you be a guarantor for a buy-to-let mortgage?

Answered on 14 February 2018

Is it still possible to get a guarantor mortgage? I would like to use my income to help my son obtain a buy-to-let mortgage with a £20k deposit on a property up to £170k. I have paid off the mortgage on my own (only) property. My understanding is that the property would be in his name, and unlike if it were in joint names, I would have no potential capital gains tax liability on sale.

Buy-to-Let Guarantor Mortgages

It is still possible to get guarantor mortgages to help family members get a residential mortgage. While possible, it is rare that lenders will consider buy-to-let mortgages with a guarantor.

Depending on your son's age and income there is potential to obtain a buy-to-let mortgage in his sole name because lenders are looking for the rental income to cover the mortgage payments, usually by a factor of around 125%, rather than for his income to cover the whole mortgage debt. Minimum rental income required can be calculated using our minimum rent calculator.

As guarantor your name would not be on the property title and any future Capital Gains Tax liability on sale would be for your son to consider.

I believe your son would benefit from speaking to one of our independent mortgage advisers on 0330 433 2927.

Ask The Mortgage Experts answers 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them. We recommend you seek professional advice with regard to any of these topics where appropriate.


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