Australian Overseas Guarantor for UK Property

Posted on 15 August 2016 by Matt

My father lives in Australia whilst I live here in the UK. My question is, can my father be a guarantor for my property here in the UK?

It is very unlikely that your father can act as a guarantor for you.  Even in the "good old days" when lenders were falling over backwards to grant mortgages, there was only one who would consider this and then only in exceptional circumstances.

Guantor Mortgage Lenders

The problem as lenders see it is that a guarantor is there to pay the mortgage should you be unable to and they need to be able to enforce this obligation. This can be very difficult if the guarantor is situated in Europe, yet alone on the other side of the world.

If your father is an Australian resident, he may also be prevented from taking out a joint mortgage with you by the Australian Corporation Compliance Act and so this option is also probably closed to you.

It may be worth considering buying with a friend or partner. However, if you do choose this route I recommend that you both take separate legal advice about how to arrange ownership and what happens if you decide to go your separate ways.

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.


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