A guarantor mortgage can help you buy a home even if you have no deposit or if your financial circumstances would usually put lenders off. Your mortgage guarantor will not own a share of the property you buy or be named on title deeds. They have to sign a legal agreement to make your repayments for you if you fall behind and let the lender use one of the following as security:
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1) Their own home (The lender holds a charge on their property which means they could repossess it if you miss too many repayments)
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2) Their savings (They put a lump sum into a savings account held by your lender. They cannot withdraw for a set number of years or until you have paid off an agreed amount of your mortgage, although they usually earn interest)
What traditional guarantor mortgages are there?

Written by Polly
Updated over a year ago