Gaurantors

[wargriff]

Hi, have been out of the mortgage game for few years and had a friend ask my advice..

He wants a mortgage, but his income is too low. His boss has offered to be gaurantor.

Now this was always a no no, and with present lending restrictions I assume it would be an even bigger NO.

Anyone have any experience of this ?

[scotal]

His boss is a very nice man.... who I guess is either minted enough that he doesnt car or doesnt know how it may affect him.

1. Guarantor's are liable for the loan, so if your mate doesn't pay, his boss is liable for the whole payment.
2. If the boss needs to borrow for himself, being a gurantor may affect his ability to do so. (again he might be so well off it doesnt matter.) It may affect his ability to remrotgage his own home for instance.
3. Does the boss want a charge on the house? Hos would your mate feel abotu that.

The boss needs to get some legal advice on what being a guarantor means for him.

[wargriff]

Money is not issue. Its the mortgage side of things im curious about.

I didnt think the mortgage lenders would allow a non related gaurantor. Has this changed recently ?

[scotal]

wargriff said:

Money is not issue. Its the mortgage side of things im curious about.

I didnt think the mortgage lenders would allow a non related gaurantor. Has this changed recently ?

Some will, some won't, so it depends on the lender.
How far off the required mortgage is your mate?

[wargriff]

lots..mortgage of around £120K.. income around £18k

so the multiple is way out.

but I will wait and see whats happening.

[B16JUS]

How can someone on 18k think of owning a house all the bills etc would he have enough to live on ?

mortgage
council tax
home insurance
electricity
gas
water

plus

food / drink
holidays
family birthdays / xmas
clothes

does he drive ? all the car bills etc etc

just seems a lot for someone on 18k