Do I Need a Guarantor?
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Do I Need a Guarantor? (Part 1)
Kevin Dunks explains how a guarantor mortgage works. Episode one of two, recorded in June 2025.
What is a guarantor mortgage and what is a parent guarantor?
A guarantor is where someone takes the financial responsibility for another person’s debt if they don’t pay, or they default on payments.
Do mortgage lenders still accept guarantors? Is it easier to get a mortgage if you have a guarantor?
Whilst there are slight differences, some lenders now offer a Joint Borrower Sole Proprietor mortgage, which is effectively a guarantor mortgage. Traditional guarantor mortgages are very rare these days.
It is complex to navigate, so talking to an expert is nearly always advantageous. This type of mortgage can make it easier to borrow more money – a guarantor can help with that.
How does a guarantor mortgage work? What are the types of guarantor mortgage?
An individual, often a parent or a sibling, promises to cover the mortgage payments if the person purchasing the property ever isn’t able to make them. Alternatively, the guarantor might lock up their savings as security for an element of the mortgage.
The most common type of guarantor mortgage now is a Joint Borrower Sole Proprietor (JBSP). This is either income and affordability based or savings backed.
If it’s savings backed, the guarantor would lock up access to their savings for a specified period of time, until the borrower is in a position to take on the mortgage in their own right.
Will I be able to borrow more with a guarantor mortgage? How much of a mortgage can I get with a guarantor?
The reason why guarantor mortgages are used is to borrow more and make someone’s goals a reality.
How much they can borrow depends on the income and expenditure of both the guarantor and the person looking to purchase the property.
As a ballpark idea, you’re looking at 4.5 times all the incomes – and you could have up to four people on an application. A couple might be looking to buy a property using one set of parents as guarantors. That would be up to four incomes, where they can borrow up to 4.5 times the total.
Often clients don’t need to borrow as much as 4.5 times, in reality. It’s best to chat to a broker, discuss it and work out what’s possible.
Can you get a 100% mortgage with a guarantor?
That’s rare. They do exist, but usually by using savings as security. This is where the guarantor locks up access to their savings for a specified period of time. You can do that without putting down a deposit. Those savings are still owned by the guarantor, but they lose access for a certain timeframe.
The best thing to do is talk to a broker about what you’re trying to achieve so they can use their knowledge, skills and the tools available to find the best solution to meet your objectives.
Do guarantor mortgages have higher interest rates?
Most lenders that offer Joint Borrower Sole Proprietor mortgages feature these in their standard product range – so there isn’t a premium for these types of products.
Having said that, fewer lenders offer Joint Borrower Sole Proprietor deals, so you might miss out on the very best deals in the market.
Who are guarantor mortgages suitable for? Can anyone get one of these? How do you qualify for a guarantor mortgage?
The most common clients for these are First Time Buyers that have slightly lower incomes than they need to buy the property they want.
It might be a recently qualified professional, on a clear career path. They’re expecting their earnings to grow in the coming years, to then take on the mortgage and remove the guarantor.
We’ve also done mortgages for university students that don’t want to rent. They have no income at all and use their parents as the guarantors. It also works in reverse – perhaps parents haven’t quite managed to pay off their mortgage as they run into retirement. If their kids are doing fairly well for themselves they might be guarantors for the parent.
There are lots of different scenarios, but ultimately guarantors are used when you aren’t able to quite achieve what you want on your own income.
What documents should I provide for a guarantor mortgage?
Documents will be required from the person purchasing the property as well as the guarantor. The documents do vary based on the circumstances and the lender’s requirements, but ultimately lenders are looking to evidence income and expenses.
For an employed person, this would typically be three months’ payslips, and for a self-employed person it would typically be two years’ accounts or tax returns. If the guarantor is retired, they’ll be looking for a pension award letter, pension payslip or statement.
Who can guarantee a mortgage?
The most common is parents, but brothers and sisters can also be guarantors, as can adult children. We also see help from aunties, uncles, close friends and even grandparents. Not every lender allows a friend to be a guarantor, but some do.
What are the risks of a guarantor mortgage? What are the downsides of being a guarantor on a mortgage?
A guarantor is basically there to step in and make monthly payments if the main borrower isn’t paying the mortgage. They’re legally responsible for the mortgage too.
The mortgage is visible on the guarantor’s credit profile, so if they’re applying for credit or a mortgage themselves, this could affect their ability to achieve their future borrowing requirements. That’s an important thing to consider.
It’s best to chat with one of our experts – to explore not just guarantor mortgages, but also conventional mortgages, because they may suit your circumstances better. Sometimes we find that people enquire about guarantor mortgages, but it’s just not needed.
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Do I Need A Guarantor? (Part 2)
We continue the conversation on guarantor mortgages with Kevin Dunks. Episode two of two, recorded in June 2025.
How much does a guarantor need to earn for a mortgage?
There isn’t a fixed amount – they could be earning anything, but most lenders look at the guarantor to cover the extra amount beyond what can be borrowed without them. The idea is to provide a little extra boost to achieve the borrower’s goal.
The guarantor won’t necessarily need to be earning enough to pay the whole mortgage – effectively, it’s just the top-up part. But they do look at the guarantor’s own bills and expenses.
Therefore, it’s likely a guarantor is going to need to be earning probably more than £20,000 per year for it to have a chance of working.
What happens if my guarantor is unable to make repayments too?
If neither party can make the monthly payments, this will impact both credit profiles – the main borrower and the guarantor. As always, your home may be at risk if you do not keep up repayments on your mortgage.
It’s important that the guarantor understands their obligations. We recommend that they seek legal advice before agreeing to be a guarantor. We can also explain their obligations before going ahead with legal advice.
Can I get a guarantor mortgage for a Buy to Let property?
The most common reason for a guarantor is to boost the income for borrowing. On Buy to Let mortgages, the main focus to assess affordability is the rental income of the property.
So the borrower doesn’t necessarily need to have an income at all. They can still obtain a Buy to Let mortgage, because the rental income self-finances the mortgage payment.
There probably are circumstances where it’s still beneficial to have a guarantor on a Buy to Let mortgage, but because the demand is so low, lenders don’t offer them. Put simply, you probably won’t need a guarantor on a Buy to Let mortgage – and they’re not readily available.
Can a parent be a guarantor if they are retired?
Absolutely. This is fairly common. Lenders will allow a guarantor on a mortgage well beyond retirement age – some lend into the 90s – but they’re going to be relying on pension income.
That’s an important factor to be considered.
What happens if my guarantor dies?
The mortgage will continue, but if you fail to keep up repayments the lender may stake a claim on the estate of the guarantor to recover any losses.
It’s unusual for someone to be eligible to be a guarantor on a mortgage unless they are in reasonable circumstances financially – so they’re likely to have assets.
Whilst there is no guarantee here, most parents willing to be guarantor will probably have the child as a beneficiary in their will. Therefore, in most circumstances, the child may inherit some money that will help them reduce their mortgage balance, possibly pay it off in full, or potentially take the mortgage in their own right.
It is sensible, though, to consider life assurance to repay the mortgage, if either the guarantor or the main borrower were to die unexpectedly. We can give advice and help with this too.
Do guarantors get credit checked?
Yes, they will. They are responsible for the mortgage too, so the lender needs to assess their ability to support the mortgage.
Can I stop being a mortgage guarantor?
Yes. The most common cycle with a guarantor mortgage is that the guarantor is mainly required at the stage of purchasing a property.
You would typically take a mortgage over two, three or five years. When the product ends, the usual outcome is that the main borrower takes the mortgage on in their own right and removes the guarantor.
Once a mortgage product comes up for renewal, it will have got smaller. The chances are that the main borrower may have had a salary increase and will no longer need the guarantor.
It’s always subject to assessment and/or repaying the debt – so it’s not that you just take the name off. The lender will check it’s affordable to do that.
Can I get a guarantor mortgage with bad credit?
It is possible, but it’s definitely harder. If there’s a late credit card payment from a year ago, or a County Court Judgment (CCJ) for a parking ticket that’s been satisfied, they’re relatively minor credit offences. In those cases, there’s a reasonable chance it’s still possible.
However, if the guarantor has missed mortgage payments or multiple defaults or CCJs, it’s a challenge. With any kind of bad credit, a mortgage broker is best placed to start navigating the options for you.
How do I get a guarantor mortgage? What is the process?
First, speak with an independent mortgage broker like us and have them listen to your objectives and circumstances. The main thing is to work out whether a guarantor is even needed.
Whether you need a guarantor or not, you’ll be matched with the most suitable lender for your circumstances and your goals – with everything explained along the way.
What else do we need to know about a guarantor mortgage?
Every customer wants information to be explained well, so they are confident enough to make informed decisions. We go through everything in plain English and make sure that you and the guarantor fully understand what’s involved.
Then, we’ll check if a guarantor is even needed. You will also be provided with a clear comparison table with explanations, to peruse and consider before you make any decisions. There’s no obligation to progress.
We love helping people – so if you want some advice, please do reach out. I promise that you’ll find our chat beneficial.
YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP TO DATE WITH YOUR MORTGAGE REPAYMENTS.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES.
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What you need to know…
The actual amount you can borrow will depend on your credit commitments, your regular monthly outgoings and how each lender assesses your income.
Lender’s affordability checks can differ meaning that the amount you can borrow may change from lender to lender. That’s where the expertise of our personal advisers comes in and where our independent status benefits you.
The minimum deposit required is 5% of the property purchase price. Most lenders will allow the deposit to come from a gift and some lenders will even consider this being raised via a personal loan. There are government incentives to help boost your savings if you are a first time buyer. Depending on your circumstance you may either need to have a larger deposit or will perhaps want to put a larger deposit down, due to preferable interest rates.
Because we are independent mortgage brokers we will be able to secure you the best deal for your circumstance.
An Agreement in Principle, also known as a ‘Decision in Principle’ will be provided after affordability and credit checks have been approved. An Agreement in Principle is extremely useful to increase your confidence when viewing and offering on properties. Estate Agents will typically want to see an Agreement in Principle before presenting your offer to the seller. Our personal advisers can help you with this.
It’s a requirement of your mortgage to have buildings insurance. This covers the bricks and mortar of the property.
It’s also a good idea to take advice from your personal adviser on protecting you and your loved ones if something bad happens. For example: Life Cover, Critical Illness Cover and Income Protection.
Being accepted for a mortgage does depend on your circumstances. We are experts with all types of mortgages…. We specialise in obtaining mortgages for the self-employed, contractors, construction industry scheme (CIS) workers and those with historic adverse credit (as well as employed people of course). In all these situations we can frequently secure high street deals. Being independent and experts is a real benefit in these circumstances.
Your monthly payments will vary depending to your chosen mortgage term, choice of mortgage product, how much deposit you have and repayment type. It is best to chat with a personal independent adviser to find out exactly what interest rate and term you can secure to give an accurate monthly payment.
Most of the first time buyers we have helped secure a mortgage are paying less on their mortgage than they used to pay on rent. This does, however, depend on circumstances. The mortgage term chosen is a major factor which can be dictated by your age and intended retirement age. Of course, it is also worth noting you are paying back the mortgage and once it is repaid you won’t have any rent to pay.
There are costs associated with purchasing your first home. You will need to pay legal fees and other potential costs include a survey fee, stamp duty (which is a property land tax) and administration fees. There are First Time Buyer government incentives on savings and stamp duty that can help you with raising the monies for a deposit, costs and reducing stamp duty. Our personal advisers can give guidance within a free consultation.