In this fast moving housing market it is becoming more difficult to secure the first step on the property ladder, increasing house prices and stricter lenders criteria are issues that you will be facing.
There are however a range of options an independent Broker such as Blackstone can advise you on.
A guarantor (perhaps a parent or close family member) is someone who promises to make your mortgage payments if you fail to do so.
If a mortgage lender isn't willing to lend you the amount of money you need, a guarantor mortgage could be the solution.
A guarantor (perhaps a parent or close family member) is someone who promises to make your mortgage payments if you fail to do so. They won't own the property so are not on the land registry, but they will sign a legal contract with your mortgage lender. Independent legal advice is therefore crucial for all parties.
Lenders will normally take the guarantors income into account when calculating the amount they will advance and this usually means you can take out a bigger mortgage than your salary alone justifies. However, you must still ensure you can afford the monthly repayments, as you will be making them out of your income, not the guarantors.
As your salary increases and the loan balance reduces to a level the lender is comfortable with, you will be able to take on the full responsibility for the mortgage and the guarantor may be released from their commitment.
The guarantor will normally have to offer their own property as security against the mortgage which does carry risk however, if no payments are missed the mortgage will not cost the guarantor anything.
Family Offset Mortgages
With family offset mortgages a parent or close family member will place their savings into an account linked to the mortgage. With some schemes the interest earned on the savings is used to reduce the monthly mortgage repayments, however in others the account is used as security should repayments be missed in which case the missed payment would be deducted from the account.
Either of these options require careful assessment by both you and the lender, so it’s important that you seek expert advice to ensure they are the right option for you.
Your Blackstone Adviser will ascertain your individual needs and circumstances as well as those of your guarantor and give you expert answers to any questions you may have. We will recommend the most suitable product to meet your needs and arrange the completion of the required paperwork.
We will also give you expert advice on protecting you and your mortgage. Again, we’ll explain your options simply and make sure you have the right kind of policy for you. You can be sure we’ll look after you, your mortgage and your home.
Blackstone will guarantee the best independent advice for you.
If you are ready for that first step call us now on Bristol 0117 403 0097.
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