Posted on 14 February 2011 by Mike Goddings
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.
It is still possible to get guarantor mortgages to help family members get a residential mortgage, but I only know of 1 Lender who has considered them for Buy to Let mortgages.
Depending on your Son's age and income it should be possible 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.
You are correct that 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. Please ask him to call on 0344 346 3672 and tell the adviser the date of this question, they will be able to look at the situation and take it from there.
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