guarantor on mortgage
Discussion
Hi guys,
Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
Bear in mind if things suddenly go tits up for you then your parents are risking everything.
My sister wanted our father to be guarantor for a house she wanted to rent and his solicitor advised him not to do it as he would be liable for everything if she decided to stop paying the rent / trashed the place. He owns his property outright and didn't fancy losing the shirt off his back.
My sister wanted our father to be guarantor for a house she wanted to rent and his solicitor advised him not to do it as he would be liable for everything if she decided to stop paying the rent / trashed the place. He owns his property outright and didn't fancy losing the shirt off his back.
HandsomeBob said:
Hi guys,
Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
It's possible but will depend on various factors, such as;Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
What % deposit do you have?
How old are your parents?
Do they still work?
What income do they have?
Do they have their own mortgage?
Sarnie said:
HandsomeBob said:
Hi guys,
Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
It's possible but will depend on various factors, such as;Wonder whether all the great mortgage guys/girls out there can help;
I run a business, have been for less than a year, cannot get a mortgage however I wondered whether my parents can guarantor a mortgage application under my name.
The frustrating thing is I have a deposit, earn on average £8k p/month since I set up my business.
There must be a solution to his problem I have
Many thanks
What % deposit do you have?
How old are your parents?
Do they still work?
What income do they have?
Do they have their own mortgage?
Dad is only one who works on circa £50-60k (this is a guestimate, could be more but no less than)
After £200k mortgage with 10-15% deposit
Currently have their own mortgage
I even thought of potentially giving my dad a deposit of 12 months worth of mortgage payments to hold in the event of non payment etc. At least it would pay for 12 months if I was ever out of work etc.
ikarl said:
If you earn 8k per month, rent somewhere, and then save the money and buy a house outright is 2/3/4 years time.
Save having a mortgage hanging over your head!
I don't think I would want all that cash tied up in a property aside the benefits of owning it outright. Also 3/4 years is a long time, £36/48k in rent lost over that period...no thanks!Save having a mortgage hanging over your head!
I've spoken to a few lenders today and they mostly will only do this for young professionals who's salary is likely to increase rapidly eg solicitors and Doctors etc.
Although one did say they would consider you once you have a full years accounts to show.
Another said they would do it right now, as long as your Father's income is sufficient.
The Guarantor also needs to be able to cover all of their own commitments plus the new mortgage.
It's also worth noting that the maximum term is dictated by your Fathers age, so the mortgage could only go up until he was 69.....so if he is close to that age, it's going to mean very high monthly payments. You could take a short mortgage to get this done and then in 2-3 years time when you have the documentation to back up your income to supposrt an application in your sole name you could remortgage, remove your Father as the Guarantor and extend the term of the mortgage accordingly.
Drop me a PM if you want any further help with this
Although one did say they would consider you once you have a full years accounts to show.
Another said they would do it right now, as long as your Father's income is sufficient.
The Guarantor also needs to be able to cover all of their own commitments plus the new mortgage.
It's also worth noting that the maximum term is dictated by your Fathers age, so the mortgage could only go up until he was 69.....so if he is close to that age, it's going to mean very high monthly payments. You could take a short mortgage to get this done and then in 2-3 years time when you have the documentation to back up your income to supposrt an application in your sole name you could remortgage, remove your Father as the Guarantor and extend the term of the mortgage accordingly.
Drop me a PM if you want any further help with this
Sarnie said:
I've spoken to a few lenders today and they mostly will only do this for young professionals who's salary is likely to increase rapidly eg solicitors and Doctors etc.
Although one did say they would consider you once you have a full years accounts to show.
Another said they would do it right now, as long as your Father's income is sufficient.
The Guarantor also needs to be able to cover all of their own commitments plus the new mortgage.
It's also worth noting that the maximum term is dictated by your Fathers age, so the mortgage could only go up until he was 69.....so if he is close to that age, it's going to mean very high monthly payments. You could take a short mortgage to get this done and then in 2-3 years time when you have the documentation to back up your income to supposrt an application in your sole name you could remortgage, remove your Father as the Guarantor and extend the term of the mortgage accordingly.
Drop me a PM if you want any further help with this
Thanks Sarnie, appreciate your help. I'll drop you a pmAlthough one did say they would consider you once you have a full years accounts to show.
Another said they would do it right now, as long as your Father's income is sufficient.
The Guarantor also needs to be able to cover all of their own commitments plus the new mortgage.
It's also worth noting that the maximum term is dictated by your Fathers age, so the mortgage could only go up until he was 69.....so if he is close to that age, it's going to mean very high monthly payments. You could take a short mortgage to get this done and then in 2-3 years time when you have the documentation to back up your income to supposrt an application in your sole name you could remortgage, remove your Father as the Guarantor and extend the term of the mortgage accordingly.
Drop me a PM if you want any further help with this
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