Do I need a guarantor?
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Do I need a guarantor? (Part 1)
Joe Capon explains how a guarantor mortgage works.
Podcast approved by The Openwork Partnership on 30/12/2025.
What is a guarantor mortgage? What is a parent guarantor?
A guarantor mortgage is where a buyer is purchasing their first home or looking to move home, and they’re helped by someone – usually a parent or a family member.
There are a few different options when it comes to guarantor mortgages. The most common one is known as ‘Joint Borrower Sole Proprietor’. This is where a parent, parents or a family member joins the applicant on the mortgage to boost what that person can borrow.
It’s used when someone’s trying to buy a home but can’t get the mortgage they need. A family member goes on the mortgage with them, adding their income to help with affordability.
The key thing is that the guarantor doesn’t go on the ownership of the property. This avoids additional stamp duty, which would normally apply if that family member already owns another property. It’s a way to get onto the property ladder where someone otherwise couldn’t, or move to a bigger property than they could afford on their own.
Another guarantor option is around deposit. If a parent or family member has savings, they could put around 10% of the property’s purchase price in a savings account with the lender. That lender then allows the applicant to buy a home with essentially no deposit.
The savings in the account aren’t classed as a gift. They normally have to stay in place for around five years, and the parent or family member would still receive interest on those. As long as the mortgage payments are kept up-to-date, they can get the savings back after five years.
Do mortgage lenders still accept guarantors? Is it easier to get a mortgage if you have a guarantor?
Not all lenders do accept guarantor mortgages, but a few do provide them. There are still lending criteria and credit scoring to go through, as with a traditional mortgage application, and income and outgoings will be assessed as usual.
If someone’s seeking a guarantor mortgage, it’s important to get the right advice so you understand all the options available. Speak to a mortgage adviser who specialises in guarantor mortgages, and we’ll talk through what could work for you.
How does a guarantor mortgage work? What are the types of guarantor mortgage?
The most common option we see is Joint Borrower Sole Proprietor. This is where a parent or a family member goes on the mortgage with the buyer, but that family member will not own the property. They are just there to help with affordability.
Not being on the ownership will avoid additional stamp duty being applied. It’s important to note that the parent or family member is assessed just like on a traditional mortgage – their age, income and expenditure will be taken into account.
As part of the process, the family member needs to receive independent legal advice. That makes sure they understand that they are liable for the mortgage repayments, but they have no ownership rights in the property.
Sometimes it’s not affordability that’s the problem, it’s lack of deposit. The other main guarantor mortgage option, then, is for a family member to use their savings to help – without having to gift the money.
Instead, they put 10% of the property’s value into a designated savings account attached to the lender. This basically acts as a deposit. As long as the applicants go on to maintain their mortgage payments, the family member who provides the funds can get their savings back after five years, and still benefit from interest on that money.
The right solution will depend on what the buyer is looking to do. Again, seek advice to decide which option suits you. It’s not just about what you’re looking to do now, but also your future plans.
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Will I be able to borrow more with a guarantor mortgage? How much of a mortgage can I get with a guarantor?
Yes, the most common reason for a guarantor mortgage is to increase the amount that can be borrowed. How much you can borrow will be determined by quite a few different factors such as income, age, expenditure, dependents and credit commitments.
Always seek advice from an experienced mortgage adviser, as one of the limiting factors can be the guarantor’s age. If the family member is older, it could limit the length of the mortgage. That could then increase the repayments for the person living in the property and become unaffordable. Once you understand the options, you can make an informed decision.
Can you get a 100% mortgage with a guarantor?
Typically what we see with Joint Borrower Sole Proprietor mortgages, is that you need a 5% deposit as a minimum. However, if a parent can use their savings and they have 10% or more of the purchase price, the person buying the property can essentially get a mortgage with no deposit from their own funds.
Do guarantor mortgages have higher interest rates?
Guarantor mortgages don’t directly have higher interest rates. You are just limited to fewer lenders and the rates they have on offer.
A mortgage adviser will display to you exactly the interest rates and products available for guarantor mortgages.
Who is a guarantor mortgage suitable for? How do you qualify for a guarantor mortgage?
Guarantor mortgages are mostly suitable for first-time buyers and home movers who are struggling either with affordability or deposit.
Qualifying for a guarantor mortgage is a similar process to a more traditional mortgage. You would get your Agreement in Principle and then, once a property has been found and an offer has been accepted, we would make the mortgage application.
The property will still need to be assessed and a solicitor will be needed just like a traditional mortgage. The only extra step for a Joint Borrower Sole Proprietor mortgage is that the family member needs to seek independent legal advice to make sure they understand that they are liable for the mortgage, but won’t have any legal ownership over the property.
What documents should I provide for a guarantor mortgage?
It’s pretty much the same documentation as a traditional mortgage. You’d need proof of your income via payslips or tax returns.
You need bank statements, normally for the last three months, to show your income and outgoings. Proof of savings sometimes may be used if there’s a deposit being provided.
We also need proof of ID and current address for anti-money laundering purposes.
Who can guarantee a mortgage?
The lenders that offer a guarantor mortgage will have criteria on who can be the guarantor. This is an important reason to seek professional advice. While the most common family members we see are parents or a guardian, step-parents can also provide the guarantee.
Some lenders accept step-siblings, as well as brothers and sisters. Grandparents, cousins, aunts and uncles may also be able to act as a guarantor with certain providers.
What are the risks for a guarantor mortgage? What are the downsides of being a guarantor on a mortgage?
The main risk with guarantor mortgages is making sure the parent or family member understands that they are fully liable for the mortgage.
We ask questions to make sure the mortgage is not going to affect them in future. If they have plans to move and will require a mortgage themselves, it could restrict their borrowing.
We obviously discuss that in detail.
A common downside of a parent or a family member going onto a mortgage can also be their age. Being older could restrict how many years the mortgage lasts, making mortgage repayments unaffordable for the main buyer. That’s why we recommend getting advice.
We make sure you understand how much this mortgage is going to cost on a monthly basis. With all the detail, you can make informed decisions.
Key Takeaways:
- A guarantor mortgage involves a buyer getting help from a family member (the guarantor) to secure a mortgage, often to boost affordability or provide a deposit.
- A Joint Borrower Sole Proprietor Mortgage (JBSP) is the most common option. The guarantor joins the mortgage to add their income for affordability but does not take ownership of the property.
- Another option involves the guarantor putting around 10% of the property’s purchase price into a designated savings account with the lender, acting as a deposit without being a gift. This money is returned with interest after about five years, provided mortgage payments are maintained.
- The main risk for the guarantor is that they are fully liable for the mortgage repayments. They are assessed like a traditional applicant and must seek independent legal advice.
- While parents are most common, lenders may accept other family members like step-parents, step-siblings, brothers, sisters, grandparents, cousins, aunts, and uncles.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 30/12/2025.