A guarantor mortgage is a type of mortgage where another homeowner – usually a family member or close friend – agrees to cover the mortgage repayments if you’re unable to.
Guarantor mortgages can be a way to get mortgage approval if you’re a first-time buyer with a limited deposit or you have a poor credit history.
However, it’s a massive financial responsibility for both you and your chosen guarantor. If neither of you can afford to cover the repayments, you could both end up losing your homes. Guarantor mortgages are also unlikely to offer the best mortgage rates, so think carefully about whether you can afford the monthly repayments before deciding if it’s the best option for you.