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If you are having trouble finding a mortgage lender willing to lend as much money as you need, either because your salary is low, you already have a lot of debt or you're buying in a expensive area, you might find they become more amenable if you come up with a guarantor.
What is a guarantor?A mortgage guarantor is someone who promises to take responsibility for your mortgage.
They guarantee that if you default on your mortgage either because you can no longer afford, or are no longer willing, to pay - they will make the mortgage payments, eventually clearing what you owe.
This is potentially a major financial commitment.Once the deal has been signed, your guarantor is legally bound and they can be made to pay out at any time during your mortgage term even if it means selling their own home.
Your lender is unlikely to agree to release them unless you find an acceptable replacement, or your salary or the value of your property has risen significantly.
Who can be a guarantor?
It is most usual to ask a parent, but any relative or even a long-standing friend can act as a guarantor.
To be acceptable to a lender, they must prove they have enough disposable income, after paying their own debts, to afford your monthly repayments too.
But don't forgetThis is not an easy option, as you will still have to make the monthly repayments.
If you can't, or won't, you will be putting your guarantor in a very difficult position, as they will be legally obliged to cough up regardless of the hardship it causes them.
To read more on this subject please see the list below or your mortgage guide or your home buying guide
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What is a mortgage?
A basic summary of the rules
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How to Choose your Mortgage
Types of Mortgage
Remortgages
Where to Find your Mortgage
Getting a Mortgage in Principle
Guide to Buying Home in the UK
Guide to UK Home and Mortgage Insurance
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Mortgage Basics
What is a mortgage?
A basic summary of the rules
How much can you borrow?
How do you prove your income?
How long are mortgages usually for?
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Mortgage Basics
How to Choose your Mortgage
Types of Mortgage
Where to Find your Mortgage
Getting a Mortgage in Principle
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