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First time buyer
A guarantor mortgage lets a parent or close family member use their savings or home equity to help you borrow more. Here's how it works, what it costs, and what to weigh up before you ask someone to guarantee your mortgage.
A guarantor mortgage for first time buyers is a mortgage where a parent or close family member provides extra security, either through savings placed with the lender or equity in their own home, so a first time buyer can borrow more than their income and deposit alone would allow.
This differs from a joint mortgage or a Joint Borrower Sole Proprietor (JBSP) mortgage, where a family member's income, rather than savings or property, is added to support the application. Because a guarantor's savings or home can be at risk, it's worth both of you getting independent legal advice and comparing the alternatives before committing.
A guarantor mortgage for first time buyers lets you borrow more than you'd qualify for alone, because a parent or close family member agrees to guarantee some or all of the mortgage using their savings or their own home as extra security. You stay the sole owner of the property, and your guarantor isn't added to the title deeds or given any stake in your home.
This is different from a standard first time buyer mortgage, where the lender relies solely on your own income and deposit. It's also different from a joint mortgage or a Joint Borrower Sole Proprietor (JBSP) mortgage, where a family member's income is added to the application without them offering savings or property as security. If a guarantor mortgage doesn't sound like the right fit, it's worth reading about other ways to buy with support before you decide.
Guarantor mortgages exist because many first time buyers have a stable income but not quite enough deposit or borrowing power to buy in their area. Lenders who offer guarantor mortgages are regulated by the Financial Conduct Authority, and you can check any firm's status on the Financial Conduct Authority Register.
Not sure where to start?
Speak to an advisor about your options, including whether a guarantor mortgage is the right fit for your circumstances.
There are two common structures lenders use for a guarantor mortgage, and it helps to understand both before you approach a lender.
Once you and your guarantor have agreed which structure suits you, the application follows a similar path to any other mortgage, with a few extra steps for the guarantor.
Because a property-backed guarantee places a legal charge on the guarantor's home, it's important both of you understand that your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
Not everyone can act as a guarantor. Lenders assess guarantors almost as carefully as they assess you, because they're taking on a share of the risk if repayments aren't made.
Guarantor eligibility
Guarantor mortgages can open the door to homeownership, but they typically come at a higher cost than a standard mortgage. It's worth understanding where those costs sit before you commit.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it, and if your guarantor has offered their property as security, theirs could be at risk too if repayments are missed and the guarantee is called upon. If you're worried about affording repayments at any point, speak to an advisor early or contact MoneyHelper on 0800 138 7777 for impartial guidance.
For more on how much you'll need to put down before a guarantor is even considered, see our first time buyer deposit guide.
The independent legal advice requirement catches a lot of families out because it's a genuine cost, not a formality. Guarantors need to budget for it and factor in the time it takes, since most lenders won't complete without proof it's been done.
A guarantor mortgage for first time buyers can be a genuine route onto the property ladder, but it's not without downsides for either party. Weighing both sides carefully, together with your guarantor, is essential before you apply.
Because the risks fall partly on your guarantor, it's worth exploring whether they're comfortable with the arrangement long before you get to application stage.
A guarantor mortgage isn't the only way to boost your borrowing power or reduce the deposit you need. It's worth comparing the main alternatives before deciding.
If none of these feel right, it's worth reading about the full range of government schemes for first time buyers before ruling anything out.
Compare your options
If you've decided a guarantor mortgage for first time buyers is the right route for you, here's what the application process typically looks like from start to finish.
How it works
Check eligibility
Confirm that both you and your prospective guarantor meet the lender's criteria before you apply.
Speak to an advisor
An advisor can compare guarantor mortgages across a wide range of lenders and flag which ones suit your circumstances.
Get a mortgage in principle
This gives you an early indication of how much you could borrow, which is useful when you start viewing properties.
Guarantor takes independent legal advice
Your guarantor meets with a solicitor to make sure they understand the risks and obligations before signing anything.
Submit your full application
You and your guarantor provide the documents the lender needs, including proof of income, savings, or property equity.
Valuation and mortgage offer
The lender values the property and, if everything checks out, issues a formal mortgage offer.
Exchange and complete
Contracts are exchanged, completion takes place, and you become the owner of your new home.
Common questions
It's possible, but harder. Lenders look at both your credit history and your guarantor's, so a strong guarantor application can sometimes offset a thin or imperfect credit file on your side. If your credit history is a bigger concern, it's worth reading our <a href="/mortgages/first-time-buyer/bad-credit/">bad credit first time buyer mortgage</a> guide alongside this one, since some lenders specialise in this combination.
Yes, in most cases. Guarantors are usually released once the mortgage balance falls to an agreed loan-to-value, often after a set number of years of on-time payments, though the exact timeframe depends on the lender and the original agreement. It's not automatic, so ask your lender what triggers a release before you sign.
Not always. For a property-backed guarantee, yes, because the lender needs equity in a home to secure against. For a savings-backed guarantee, the guarantor doesn't need to own property at all, as long as they have sufficient savings to place with the lender.
Some lenders offer guarantor products that cover 100% of the purchase price when combined with sufficient guarantor security, though these are less common and typically come with stricter criteria. Most guarantor mortgages still expect some contribution from your own deposit.
It can. Acting as a guarantor is usually treated as a financial commitment by other lenders, which can reduce how much your guarantor is able to borrow themselves while the guarantee is in place. This is one of the main reasons to think it through carefully as a family before agreeing to it.
Guarantor mortgage agreements set out what happens in this situation, and it varies by lender. In many cases, the guarantee ends and the lender reassesses the mortgage based on your own income and the property's loan-to-value at that point, which may mean the mortgage needs to be restructured. It's worth asking the lender this question directly before you commit.
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First Time Buyers
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