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Will a guarantor mortgage unlock your dream home?

What is a Guarantor Mortgage?

A Guarantor mortgage is perfect if you are dreaming of owning your own home but struggling to secure a mortgage due to your credit history or a lower income.

Using a guarantor helps lenders to approve a mortgage when they otherwise wouldn’t.

Find out more about getting a guarantor mortgage & how the FUNDED model can help.

miniature house and keys for a first time buyer mortgage or a guarantor mortgage applicant

How does a Guarantor Mortgage work?

A guarantor mortgage involves a third party, typically a family member, who agrees to guarantee the mortgage repayments if the borrower defaults. This provides additional security for the lender, allowing individuals with limited credit history or lower income to access mortgage finance.

Types of Guarantor Mortgages:

There are various types of guarantor mortgages available, including family deposit mortgages and family offset mortgages. Each type has its own features and benefits, so it’s essential to understand the options available before making a decision.

How and our FUNDED system can help:

  • Specialised Expertise:
    • specialises in helping individuals secure guarantee mortgages, leveraging the FUNDED model to match borrowers with suitable lenders who are willing to accept a guarantor. We’re also there to discuss who can guarantee your mortgage and what the criteria for them would be.
  • Personalised Solutions:
    • Through the FUNDED model, offers personalised solutions tailored to the unique circumstances of each borrower, ensuring that they receive the best possible mortgage terms and rates.
  • Streamlined Process:
    • streamlines the mortgage application process, guiding borrowers through each step and providing expert advice and support along the way. This reduces stress and uncertainty, making it easier for you to achieve your homeownership goals.

Benefits of Guarantee Mortgages:

  • Access to Finance:
    • Guarantor mortgages provide individuals with limited credit history or lower income access to mortgage finance that they may otherwise struggle to obtain.
  • Lower Interest Rates:
    • With the backing of a guarantor, borrowers may be able to secure lower interest rates compared to other types of high-risk mortgages, saving them money over the long term.
  • Improved Affordability:
    • Guarantor mortgages can make homeownership more affordable by allowing borrowers to spread the cost of repayments over a longer term or borrow a higher loan-to-value ratio.

Who Can Benefit from Guarantor Mortgages:

  • First-Time Buyers:
    • Younger individuals or those with limited credit history who are struggling to save for a deposit or meet lender requirements.
  • Self-Employed Individuals:
    • Self-employed individuals who may have fluctuating income or difficulty providing traditional proof of income documents.
  • Individuals with Poor Credit:
    • Borrowers with a history of poor credit or financial challenges who are unable to qualify for a mortgage on their own.

Challenges of Obtaining a Mortgage Without a Guarantor:

  • Limited Credit History:
    • Individuals with limited credit history may struggle to qualify for a mortgage without a guarantor to provide additional security to the lender.
  • Low Income:
    • Borrowers with a lower income may find it challenging to meet lender affordability criteria without the support of a guarantor to bolster their application.

In conclusion, guarantor mortgages offer a lifeline to individuals who may face challenges in obtaining a mortgage through traditional channels. With the expertise of and the FUNDED model, aspiring homeowners can navigate the complexities of the mortgage market with confidence and achieve their dream of homeownership.