Posted on 2 October 2011 by Victoria
I own a property with around £50k in equity. I have just started work freelancing but wish to buy a bigger property. I wish to borrow around £200k and my income is around £30k, which would not be enough.
My sister currently earns around £80k and has her own mortgaged property. Would she be able to act as guarantor? I also plan to rent a room wish would generate about £300pm.
When lenders consider accepting a guarantor they not only look at your current situation, but also at your potential to afford the mortgage on your own within a reasonable period. This is rather subjective and will depend on the job your are in, how long you have been there and how quickly your earnings are likely to rise to a point where you meet their income calculations.
On top of this they will look at the suitability of the person acting as guarantor. They usually have to be a close relative, which your sister is and have sufficient income to support the new mortgage in addition to any existing commitments of their own. Some lenders will want them to cover the whole of the new mortgage, whilst others will only want the 'shortfall' guaranteed.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.
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