Understanding Guarantor Mortgages

For many aspiring homeowners, saving for a substantial deposit can be a daunting challenge. A guarantor mortgage offers a potential solution. This type of mortgage allows you to borrow more than you might typically qualify for by involving a guarantor – usually a parent or close family member – who agrees to support your mortgage application.

How a Guarantor Mortgages Calculator Works

A guarantor mortgages calculator is a digital tool designed to provide you with an estimated mortgage amount based on your financial circumstances and those of your guarantor.

By inputting key details such as:

• Your income
• Your guarantor’s income
• The desired property value

The calculator can generate a potential mortgage amount. It’s important to remember that this is an estimate and the final decision will always rest with the lender.

What makes a Guarantor mortgages calculator different?

A Guarantor mortgages calculator allows you to enter both your income, and the income of another in order to increase the amount you can borrow. With our Guarantor mortgages calculator you enter your income when asked for it, and then when it asks if this is a joint borrower sole proprietor mortgage, just say yes, and it will let you enter your guarantors income as well.

By doing this the calculator will increase your borrowing amount based on the guarantors income. However, guarantor mortgages calculators are not 100% accurate, and if you want a more accurate figure, we suggest you get in touch with one of our specialist mortgage brokers who can give you an accurate figure.

What is Joint Borrower Sole proprietor?

Joint borrower sole proprietor is another term for Guarantor mortgages, and is much more widely used. This is the mortgage equivalent and allows you to add someone on to your mortgage to increase your borrowing power, without them owning the property.

How much mortgage can I get with a guarantor?

The above guarantor mortgage calculator will give you an idea of how much you may be able to borrow, however we highly recommend speaking to a specialist mortgage broker who may be able to give you a much more accurate figure. If you want to speak to one of our team use the get started link at the top of the page.

Is it hard to get a guarantor mortgage?

Guarantor mortgages, or Joint borrower sole proprietor mortgages are available from many lenders and all have different criteria. They tend to require more underwriting than a standard mortgage, and it is highly recommended that you utilise the advice of a specialist mortgage broker to make sure everything is done properly and in a timely manner.

How much deposit do you need if you have a guarantor?

Guarantor mortgages or Joint borrower sole proprietor mortgages are available with as little as 5% deposit. However, it is usually better to have the biggest deposit possible with any mortgage. As this will generally reduce your underwriting, and reduce the interest rate you may be able to get.

Can my retired parents be guarantors?

Retired parents can often be guarantors, as many lenders will allow you to go to later ages if you are not going to be the homeowner. However, the younger they are, the more options you will have. As this varies a lot from one lender to another, we highly recommend using our guarantor mortgages calculator or speaking to one of our team to get started.

Factors Affecting Your Borrowing Power

Several factors influence the amount you can borrow with a guarantor mortgage:

• Guarantor’s financial strength: Your guarantor’s income, credit score, and assets significantly impact the amount you can borrow.
• Your financial situation: Your income, credit history, and existing debts also play a crucial role.
• Property value: The value of the property you intend to purchase will determine the loan-to-value (LTV) ratio.
• Lender’s criteria: Different lenders have varying criteria for guarantor mortgages, so the amount you can borrow may differ between lenders.

Benefits of Using a Guarantor Mortgages Calculator

• Estimate affordability: Determine if homeownership is within reach based on your financial situation.
• Compare mortgage options: Explore different mortgage products and lenders to find the best deal.
• Save time: Quickly get an idea of your potential borrowing power without visiting multiple lenders.
• Increase your chances of homeownership: By understanding your options, you can take steps to improve your financial position and increase your chances of securing a mortgage.

Can I get a mortgage with bad credit and a guarantor?

Many people look at guarantor mortgages, or use our guarantor mortgages calculator because they have bad credit and think they will need a guarantor. Whilst you can get a guarantor mortgage with bad credit, usually they are used to increase the amount you can borrow. You can usually get a mortgage with bad credit without a guarantor, and having one will rarely improve your options for getting a mortgage.

Tips for Maximising Your Borrowing Potential

• Improve your credit score: A good credit history can positively impact your borrowing power.
• Reduce your outgoings: Lowering monthly expenses can increase your affordability.
• Choose the right guarantor: Opt for a guarantor with a strong financial profile.
• Shop around: Compare offers from different lenders to find the best interest rate and terms.

Important Considerations of a guarantor mortgages calculator

While a guarantor mortgages calculator can be a helpful tool, it’s essential to remember that it provides an estimate only. The actual amount you can borrow will depend on various factors, including the lender’s assessment of your application.

It’s always advisable to seek professional advice from a mortgage advisor who can provide personalised guidance and help you find the best mortgage deal to suit your needs.

By utilising a guarantor mortgages calculator and understanding the factors that influence your borrowing power, you can take a significant step towards achieving your dream of homeownership.