Do I need a guarantor?

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Do I need a guarantor? (Part 1)

Xavier Collin explains how a guarantor mortgage works. Episode one of two, recorded in August 2025.

What is a guarantor mortgage or a parent guarantor mortgage?

A guarantor mortgage is for someone who doesn’t have enough income to qualify for a mortgage on their own. The guarantor provides a guarantee that they’ll repay the loan, if the borrower fails to keep up with the agreed payments.

The person who guarantees the mortgage is usually a parent or an immediate family member, but there are lenders who can accept non-family members too.

Do mortgage lenders still accept guarantors? Is it easier to get a mortgage if you have a guarantor?

Yes, there are lenders that still offer guarantor mortgages. They have specific criteria around what is and isn’t allowable – such as age, credit commitments and income. Your mortgage advisor will, of course, help you to navigate those.

The most common type of guarantor mortgage is called Joint Borrower Sole Proprietor (JBSP) – where you’re both listed as borrowers but only one of you is actually the owner of the property.

It might be easier to obtain a mortgage with a guarantor if you’re struggling with affordability. As always, it will of course depend on your individual circumstances – your advisor will look at that for you and ascertain the best route for you.

How does a guarantor mortgage work? What are the types of guarantor mortgage?

There are three main types of guarantor mortgage, either using the guarantor’s income, savings or property as the guarantee. Using the income as the guarantee is better known as a Joint Borrower Sole Proprietor mortgage, where the guarantor is a joint borrower but doesn’t actually own the property.

Alternatively, there are options for the guarantor to put up savings in a linked bank account held by the lender, or they could put up equity in their own home. That’s often done via a legal charge on the property, which is used as collateral should the mortgagee fail to keep up with their repayments.

Those latter types of guarantor mortgage are a bit less common these days, and Joint Borrower Sole Proprietor is more popular at the point of recording this in August 2025. There are lenders that still accept those old school types of guarantor mortgage, though.

Will I be able to borrow more with a guarantor mortgage? How much of a mortgage can I get with a guarantor?

In most cases, I’d say that having a guarantor will boost your mortgage borrowing ability. The lender will use the guarantor’s income as part of the affordability calculations. The more income you have, typically, the more you can borrow.

How much you can borrow will depend on both applicants’ income and other factors – such as their expenditure, credit score and future commitments. Your mortgage advisor will advise what’s best for you and your circumstances, by assessing your own individual scenario.

We’ll let you know exactly what your borrowing power is, what you can and can’t do and exactly where you stand.

Can you get a 100% mortgage with a guarantor?

Only a limited number of lenders are offering 100% mortgages. Wanting to use a guarantor would fall outside of the criteria for those products, unfortunately.

However, the mortgage market is ever-changing. So although it’s not something that lenders offer currently, it may well be something they offer in the future. I would still advise anyone to reach out to us – there may be alternative solutions suitable for your needs.

Do guarantor mortgages have higher interest rates?

Generally a guarantor mortgage will have a higher interest rate compared to a standard mortgage – just because they do carry slightly more risk to the lender. That risk is reflected in the interest rate.

There are also some high street mortgage lenders who offer this facility, and their rates will likely be a bit more competitive. Again it will depend on what rates are available at the time – they are ever-changing.

What documents should I provide for a guarantor mortgage? What do I need to prepare?

Every lender’s requirements will vary. But as standard, we’d need proof of ID, proof of address and proof of income via payslips if you’re employed. If you’re self-employed, we need your tax computations and tax returns. We would need pension statements if you’re receiving pension income.

We need bank statements as well. They’re the main requirements from lenders, but there may also be other documents some lenders request. Your advisor will let you know.

A lender is also going to require that the guarantor gets independent legal advice, as well. A solicitor would ensure they fully understand their role as a guarantor and any potential risks and consequences they may face, should the main mortgagee fail to keep up with their repayments.

Who can guarantee a mortgage?

In most cases, lenders would require it to be an immediate family member, such as parents or siblings. Some lenders have started to open up to non-immediate family members – aunties, uncles, grandparents, or even friends. That gives people a bit more choice and flexibility.

What are the risks of a guarantor mortgage? What are the downsides of being a guarantor on a mortgage?

This is really important to cover off. We need to make everyone aware of the potential downsides.

As a guarantor on a mortgage, you are jointly liable for the mortgage debt, which means that the bank can and will pursue you for the debt should the main borrower fail to pay.

That’s why lenders require guarantors to obtain independent legal advice, to ensure they’re fully aware of all the risks involved and the implications should the main borrower fail to keep up on those repayments.

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.

ASSET HARBOUR MORTGAGE AND PROTECTION LIMITED TRADING AS ASSET HARBOUR MORTGAGE AND PROTECTION ARE AN APPOINTED REPRESENTATIVE OF HLP PARTNERSHIP LIMITED, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £99 to £999 and this will be discussed and agreed with you at the earliest opportunity.

Speak To an Expert

We can advise how much you can borrow, find the most suitable lender and have that Decision in Principle in place. Then, when you do make an offer on a property, you’re ready to go.

Do I need a guarantor? (Part 2)

Xavier Collin continues the conversation on guarantor mortgages. Episode two of two, recorded in September 2025.

How much does a guarantor need to earn for a mortgage?

There isn’t a specific figure required, although it would need to have a positive impact on the potential borrowing.

It also needs to be sufficient to cover their own commitments and liabilities as well as the new mortgage. That’s something to bear in mind – the guarantor needs to earn enough not only to cover the new debt, but any existing debts as well.

What happens if my guarantor is unable to make repayments too?

If for some reason both of you can no longer cover the outstanding mortgage repayments, your home could be at risk of repossession – and so could that of the guarantor, depending on the type of mortgage you have.

As with any mortgage, if you can’t keep up with the repayments, your home could ultimately be repossessed.

Can I get a guarantor mortgage for a Buy to Let property?

This is actually quite an unusual scenario – because the affordability on a Buy to Let mortgage is usually based on the rental income generated by the property. There wouldn’t really be a need for a guarantor.

In most cases, it would just be a joint application where both parties are liable for the mortgage and both are owners of the property. Then, both parties can take advantage of the potential profits and rental income generated from the property. It would be a joint mortgage where you both want to own the property, rather than to help with affordability.

Can a parent be a guarantor if they are retired?

Definitely. If your parents’ retirement income is sufficient, that’s something lenders could consider. It will, of course, be subject to the standard checks for affordability and credit score.

What happens if my guarantor dies?

That can be a very sensitive situation, but it’s still important to know. You’ll first need to notify your lender that the guarantor has sadly passed away, and confirm the next steps. Your lender will explain that for you because it will vary with different providers.

It may be that you’re able to take over the mortgage by yourself at this point, or they may require an alternative guarantor to take over that position. First and foremost, you need to let the lender know and they will advise on the next steps.

Do guarantors get credit-checked?

Yes – the lender will carry out the same checks on the guarantor as on the main borrower. It’s to ensure that the guarantor is in a position to repay the mortgage should you be unable to.

That will include credit checks, affordability checks and other verifications. Guarantors will definitely be credit-checked, to ensure they’re eligible to go on the mortgage agreement.

Can I stop being a mortgage guarantor?

Guarantor mortgages are usually a short to medium-term solution to help someone get on the property ladder.

As the mortgage balance decreases, hopefully the main mortgagee will be in a position to take over in their sole name. They may have received salary increases, mortgage balance reductions or changes in circumstances.

At the point of looking into your remortgage options when your initial rate comes to an end, your advisor will explore the possibilities for you. We’ll see whether it’s possible to remove the guarantor and you can take over the mortgage in your own name.

Can I get a guarantor mortgage with bad credit?

It will depend on the type of bad credit you have. The term ‘bad credit’ can be quite broad and each lender will have different criteria around it.

If there is a lender that will consider your bad credit, a mortgage advisor will locate them for you and advise you. I would always encourage anyone to reach out to understand their options regardless of the situation – you might be pleasantly surprised.

However serious it may seem to you, an advisor can give you proper advice – and you may find that there are more options than you expected.

How do I get a guarantor mortgage?

The best place to start is always speaking to a mortgage advisor. We’ll have a look into the options based on your circumstances and advise you on the most suitable solution.

We’ll find out if a guarantor mortgage is available to you and explore who could potentially be that guarantor. You’re not so limited in who can be a guarantor anymore. We’ll let you know the best avenue and mortgage options for you and your individual circumstances.