If your income, deposit or credit profile makes a standard mortgage harder to access, a guarantor arrangement may give the lender extra support.
That support can work in different ways, depending on the mortgage product. Some arrangements may use the guarantor’s income, savings or property equity to strengthen the application.
Because the guarantor may be taking on financial responsibility, both sides need to understand how the arrangement works, what is being secured and how the guarantor could be released later.
What to know about a guarantor mortgage
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The guarantor is taking on responsibility
If payments are missed, the guarantor may be expected to help cover the mortgage or meet the lender’s requirements.
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Both people may be assessed
Lenders usually check the borrower and guarantor, including income, credit history, age, commitments and overall affordability.
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Support can work in different ways
Some arrangements use the guarantor’s income, savings or property equity to support the mortgage application.
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The guarantor’s position needs protecting
Independent legal advice may be needed, especially where savings or property are being used as security.
Buying with a guarantor? Check your options
What is a guarantor mortgage?
A guarantor mortgage is a mortgage supported by another person, often a parent or close family member.
The guarantor does not usually own the home, but they may support the application by agreeing to provide extra security or financial backing. The exact arrangement depends on the lender and product.
This can help some buyers access mortgage options that may not be available when applying alone, but it is a serious commitment for the person acting as guarantor.
How gifted deposits work in practice
A guarantor mortgage can work in different ways. Some use the guarantor’s income to support affordability, while others may involve savings or property being used as security.
Example guarantor mortgage scenario
Example
Amount
Property price
£250,000
Buyer’s deposit
£12,500
Mortgage required
£237,500
Loan-to-value
95%
Guarantor support
Parent supporting the application
This example shows how guarantor support and a gifted deposit could combine to make up a 5% deposit at different property prices. Check your own figures with our loan-to-value calculator →
Who can be a guarantor?
A guarantor is often a parent, grandparent or close family member, although lender rules can vary.
Some lenders may consider another relative or someone with a close connection to the borrower. The right person will usually need to be financially stable, comfortable with the commitment and accepted by the lender.
Not everyone can act as a guarantor. The lender will usually need to assess both the borrower and the person providing support.
What lenders may check
Lenders usually assess both the borrower and the guarantor before deciding whether the arrangement fits.
They may look at:
- the borrower’s income, spending and credit history
- the borrower’s deposit and property type
- the guarantor’s income, assets, debts and credit profile
- whether savings, income or property are being used as security
- whether the guarantor could afford the commitment if payments were missed
- how the guarantor could be released later
These checks can be more detailed than a standard mortgage because another person may be taking on financial responsibility.
Check your family support route
Muttuo can help you compare guarantor, family-assisted and JBSP options before you apply.
Family support routes to compare
Family support can work in different ways. The right route depends on whether the support comes through income, savings, property security or a shared application.
Income-backed guarantor mortgage
A guarantor may support the application using their income.
- May help where the borrower’s income alone is not enough
- The guarantor may still be responsible if payments are missed
Savings-backed family mortgage
A family member may place savings into a linked account as security.
- Savings may be held for a set period or until lender conditions are met
- The family member should check when and how the money can be released
Property-backed family mortgage
A family member may use equity in their own property as security.
- A legal charge may be placed against the guarantor’s home or equity
- Their property could be at risk if the borrower does not keep up with payments
Joint borrower, sole proprietor
A joint borrower sole proprietor mortgage can let someone help with affordability without being named as an owner.
- More than one person can be named on the mortgage
- The property usually stays in the buyer’s name
Not sure which family support route fits?
Muttuo can help you compare guarantor, gifted deposit, JBSP and joint mortgage options before you apply.
Benefits and responsibilities of a guarantor mortgage
A guarantor mortgage can help make buying a home more achievable in the right circumstances, but it also creates a serious financial commitment for the guarantor.
Potential benefits
It may strengthen the application
A guarantor may help support the mortgage application if the lender needs more reassurance around affordability or overall risk.
It may support borrowing potential
Support from a guarantor can sometimes help a buyer access a mortgage they could not get alone.
It may help with a smaller deposit
Some guarantor or family-assisted routes may support buyers who have a smaller deposit.
Responsibilities to check
The guarantor may need to step in
If the borrower misses payments, the guarantor may be expected to cover them, depending on the mortgage agreement.
Savings or property may be at risk
Some products use the guarantor’s savings or property as security.
It could affect the guarantor’s plans
Acting as a guarantor could affect the guarantor’s own borrowing, financial plans or ability to move home later.
Future changes can be harder
Removing the guarantor, remortgaging or changing the arrangement later may need lender approval and extra legal work.
A guarantor mortgage should only be considered when everyone understands the responsibility, risk and exit route.
What should a guarantor check first?
Before agreeing to support a mortgage, the guarantor should understand what they are responsible for and how long the arrangement could last.
They should check:
- whether their income, savings or property could be used as support
- what happens if the borrower misses payments
- whether their own borrowing plans could be affected
- how and when they could be released from the arrangement
- whether independent legal advice is needed
A guarantor mortgage should be treated as a serious financial commitment, not just a favour.
Take the guesswork out of affordability. Check how much you could borrow with our affordability calculator →
Can a guarantor be released later?
A guarantor may be released later, but it depends on the lender and the mortgage structure.
The lender may need to check whether the borrower can afford the mortgage without guarantor support. They may also look at the loan-to-value, payment history, income and wider affordability.
If the borrower does not yet meet the lender’s criteria, the guarantor may need to remain in place for longer.
Removing a guarantor, remortgaging or changing the arrangement may also need legal work. Before applying, it is worth checking what needs to happen for the guarantor to be released.
Is a guarantor mortgage right for you?
A guarantor mortgage may be worth exploring if buying alone is difficult and a family member is comfortable supporting the application.
It may help if affordability is close, your deposit is smaller, your credit history needs context, or you need a family-assisted route to make the purchase work.
However, it may need more caution if the guarantor is uncomfortable with the risk, may need their savings or equity soon, or does not fully understand the responsibility involved.
The right route should support the buyer without placing unclear or unsuitable pressure on the person helping.
How Muttuo Mortgages can help
A guarantor mortgage needs to work for both the borrower and the guarantor. Muttuo can help you compare the options, lender criteria and responsibilities before you apply.
Muttuo Mortgages can help you:
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check whether a guarantor mortgage could fit your situation
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compare over 100 lenders that may consider your borrower and guarantor position
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review guarantor, JBSP and family-assisted mortgage routes
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help you understand what to prepare before applying
Whether you are buying with family support or comparing ways to improve affordability, getting advice early can help you understand which options are realistic before you apply.
Is a guarantor mortgage for you?
Muttuo can help you compare guarantor mortgage options, lender criteria and next steps before you apply.
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Guarantor mortgage FAQs
These FAQs answer common questions about guarantor mortgages, including who can be a guarantor, what lenders may check and what risks the guarantor should understand.
What is a guarantor mortgage?
A guarantor mortgage is a mortgage where another person agrees to support your application.
The guarantor may become responsible if you miss payments. They are often a parent or close family member, but lender rules can vary.
Who can be a guarantor for a mortgage?
Guarantors are usually close family members.
Many lenders prefer parents, grandparents or close relatives. The guarantor will usually need to meet the lender’s checks around income, credit profile, age and financial commitments.
Does a guarantor own part of the property?
Usually, no.
A guarantor usually supports the mortgage without being named as a legal owner of the property. However, the exact legal arrangement depends on the lender and product.
Is being a guarantor risky?
Yes, it can be.
If the borrower misses payments, the guarantor may be expected to cover them. In some cases, their savings or property may be used as security.
Can a guarantor mortgage help if I have a small deposit?
It may help in some cases.
A guarantor can sometimes strengthen an application, but the lender will still assess the borrower, guarantor, property and affordability. A guarantor does not guarantee approval.
Can a guarantor mortgage help if I have bad credit?
It may help in some cases, but lender choice can still be limited.
The lender will look at the type of credit issue, how recent it is, whether it has been settled, the deposit size, affordability and the strength of the guarantor’s position.
Can parents use savings to help with a mortgage?
Some family-assisted mortgage products may allow parents or relatives to use savings as security.
The savings may be held for a set period or until lender conditions are met. The exact rules depend on the product.
Can parents use their property to help?
Some products may allow a family member’s property or equity to be used as security.
This can create serious risk, so the family member should understand what could happen if the borrower does not keep up with payments.
Can a guarantor be removed later?
Sometimes, but it depends on lender approval.
The borrower may need to show that they can afford the mortgage without guarantor support. The lender may also consider payment history, loan-to-value and wider affordability.
Is a guarantor mortgage the same as JBSP?
No.
A guarantor mortgage usually involves someone guaranteeing or securing the mortgage. A joint borrower sole proprietor mortgage usually involves another person being named on the mortgage to support affordability, while not being named as an owner.
Is a guarantor mortgage the same as a gifted deposit?
No.
A gifted deposit is money given towards the buyer’s deposit. A guarantor mortgage involves another person supporting the mortgage, often through responsibility, savings or security.
