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What traditional guarantor mortgages are there?
What traditional guarantor mortgages are there?
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Written by Polly
Updated over a week ago

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:
1) Their own home (The lender holds a charge on their property which means they could repossess it if you miss too many repayments)
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)

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