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A guarantor mortgage offers a helping hand to those trying to get onto the property ladder.

How can the guarantor mortgage help young first time buyers?

Buyers who may not have sufficient income to get a mortgage in their own right, may need the help of a parent or parents acting as guarantor(s).  The guarantor mortgage allows the young person to be named on the mortgage and be registered as the owner, this helps avoid the possibility of parents buying a property for their child having to pay the higher rate of stamp duty which is chargeable on second properties.  This is a great opportunity for parents with children who are studying at university, looking to purchase a property as opposed to renting.

Loan amount and loan to value

There will be a minimum and maximum loan size for a guarantor mortgage, depending on your lender.  You may also be able to lend up to 90% of the purchase price or property valuation (whichever is lower).

It is a requirement that the guarantor takes independent legal advice to ensure they fully understand the legal obligation of providing a guarantee.

To find out more please contact our qualified mortgage advisers on 01387 270340 or 01228 711881.

_{David Allen Financial Services is a trading name of David Allen Financial Services (Dalston) Ltd (Registered in England & Wales, Company Number 06966976) and has its registered office at Dalmar House, Barras Lane, Dalston, Carlisle CA5 7NY.  The company is authorised and regulated by the Financial Conduct Authority.  Firm Reference 506138.  Your home may be repossessed if you do not keep up repayments on a mortgage secured on it.}