Halifax Guarantor Mortgages

Answered on 20 October 2015 by Nick Morrey

My 25 yr old daughter bought a new build flat with her boyfriend in May 2011 for £174k. Relationship broken down. 15% shared equity put in by builder. We provided £8,500 as did her ex partner. He now wants to sell it. The mortgage is for £130k with Halifax. I assume daughter will not be eligible to take on mortgage on her own as she only earns £21k p.a. Could I act as a guarantor - I am 64, work full time on approx £36k pa plus have a pension of £30k pa and own 100% equity in a property worth approx £725k.

Halifax do not offer guarantor mortgages at this time and I think that it could be quite difficult to get a new mortgage elsewhere at a competitive rate. However, I have spoken to Halifax and they would be willing to consider you taking over your daughter's ex partner's share and having the mortgage in the joint names of you and your daughter.

They would want to restrict the mortgage term to 10 years, so that the mortgage is repaid by your 75th birthday and there would be stamp duty and other costs to consider. Feel free to take a look at our guide for stamp duty tax.

I suggest that you speak to your local Halifax branch and also take independent legal advice.

Answers provided in response to Ask the experts 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.


You are currently offline. Some pages or content may fail to load.