Getting A Mortgage Guarantor : A Word Of Caution

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 This means that someone they are related to or are close friends with will guarantee some or all of their borrowing. A guarantor mortgage is a program in which a person such as a mum or dad will agree to keep up the mortgage payments if their child defaults. The debtor may not only risk their own credit rating when the mortgage borrower fails to make repayments, but also that of the guarantor. Several lenders require that the guarantor guarantees the entire sum, whilst others require just part of the loan to be guaranteed.Very technically, most home mortgages are “guaranteed” by mortgage insurance, but major mortgage lenders also extend credit to first-time buyers whose family members guarantee their loans.No deposit home loans do exist but they may require a guarantor for the deposit component of the mortgage.Many of market brokers recommend these schemes and will go through the pros and the cons, they also recommend that you speak to a solicitor to fully understand the risks that a guarantor takes in helping the guarantee.

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