Guarantor mortgages also require a close family member to help reduce your mortgage loan.
They could either use their own home (which they’ll most likely need to own outright), or savings as security on your mortgage. This means their home could be repossessed if you miss too many mortgage repayments.
Your guarantor needs to agree that they will pay your mortgage if you cannot meet the repayments yourself. Parents or other close relatives are the most common type of guarantor.
Many lenders prefer them to be a joint applicant on the mortgage.
Some lenders say only parents, grandparents or stepparents can be guarantors. They should have enough equity in their own property and/or a certain amount of income to satisfy the lender’s rules. They’ll also need a good credit history.