Do I need a guarantor?
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Do I need a guarantor? (Part 1)
Lee Gathercole and Neezam Romjon explain how a guarantor mortgage works. Episode one of two, recorded in April 2025.
Podcast approved by The Openwork Partnership on 30/04/2025.
What is a guarantor mortgage? What is a parent guarantor?
‘Guarantor mortgage’ is more of an old term now. There is now a more modern version of this, known as Joint Borrower Sole Proprietor. It’s a mouthful, but that’s essentially the new name for it.
It enables you to have mum, dad, brother, sister, a relative or even a friend to support you on a mortgage application. They would be named on the mortgage, but wouldn’t be named as an owner. We’ll explain more about how it works as we go.
Do mortgage lenders still accept guarantors?
A lot of lenders don’t nowadays. Not every bank or building society will lend to you, even if you’ve got a guarantor behind you to take some of that risk away, in their eyes.
There are some options available, but they don’t sit under the old style of guarantor anymore. Some banks and building societies have come up with new approaches that are similar to the old style guarantor, but not every lender will offer you something in that area.
Is it easier to get a mortgage if you have a guarantor?
With some lenders, having some support can allow you to get a bigger mortgage. That tends to be one of the challenges that many buyers face – having enough income to borrow the amount needed for the property you want.
It can be a little easier to get the level of borrowing you need with some lenders, but that approach is not available with all lenders. It is quite limited.
How does a guarantor mortgage or JBSP work?
The refreshed version of guarantor mortgages is the Joint Borrower Sole Proprietor approach. That enables someone to be named on the application with you.
In most cases, it has to be a parent or other relation, who supports your application with their income. If you can’t quite get the borrowing you need, you can use mum or dad’s income to boost it up a little bit. That is one of the biggest benefits of it.
It doesn’t necessarily mean you’re more likely to get a mortgage. It will just potentially help you get the borrowing you need.
What are the types of guarantor mortgage?
There are different ways that someone can support you with a mortgage, and Joint Borrower Sole Proprietor is one of them.
Other options could include mortgages with no deposit, that instead require your mum and dad to hold some funds in an account for a particular period of time. Or, certain mortgages use some of the equity in your parents’ house as a deposit to secure a property of your own.
There are many different options. This is probably one of the benefits of using a mortgage advisor – to help you understand all the different options available to you. Lenders are smarter in how they do things now, beyond just supporting you with a guarantor.
Will I be able to borrow more with a guarantor mortgage? How much of a mortgage can I get with a guarantor?
In theory, yes, because you’re introducing another borrower onto the mortgage application with another source of income. But it still goes through a full affordability test with the bank you’re applying with.
If the person you’re bringing in for their income also has a mortgage, or pays rent, or they have loans, or car finance, or credit card balances, or issues with their credit score… These things can actually have the opposite effect.
You might bring someone onto a mortgage and realise you can borrow even less than you could without them. It’s not always a case of more income being better, because lenders still factor in the affordability side.
The other thing to factor in is age. If you’re bringing on a guarantor who is a bit older and closer to retirement age, they’re not going to get the same mortgage term as a 30 year old. If you’re 30, a 30-year term would take you to age 60. But if you’re adding a parent aged 60, the lender is not going to be comfortable with taking the guarantor up to age 90 on a mortgage.
The shorter the mortgage term, generally the less you can borrow – that’s another factor affecting affordability. All of those things will dictate how much you can borrow and the mortgage you could get with a guarantor.
Can you get a 100% mortgage with a guarantor?
There are 100% mortgages available as we speak today in April 2025. One particular high street bank offers this, providing your relative has some savings in an account with that particular bank for a period of time – five years, for example.
Those savings can be used in place of a deposit. They don’t necessarily have to put it towards the purchase of the house, if they’ve locked it into an account. They earn interest on it, too. It doesn’t require them to give any physical money to the family member getting a mortgage.
There are also 100% mortgages or low deposit mortgages without a guarantor. There’s currently a £5,000 minimum deposit mortgage, and a 100% mortgage based on the amount of rent you’ve been paying in the past. You would need to look at all the details, but the point is there are options out there that don’t require you to have a deposit or a guarantor. It’s just something to consider.
Do guarantor mortgages have higher interest rates?
A Joint Borrower Sole Proprietor mortgage or the old style guarantor mortgage do often carry slightly higher interest rates. With some lenders it might be a specialist product, with special rates.
However, there are also banks who will offer the same interest rates to someone without a guarantor as on a Joint Borrower Sole Proprietor mortgage. You’re both qualifying for the same interest rates. So the answer is both yes and no, depending on the lenders we’re looking at.
That’s our job as an advisor, to step in and explain. Perhaps on paper one particular bank’s giving you a better interest rate, but it may only be in the standard range. It’s not on a Joint Borrower Sole Proprietor product. We help you compare apples with apples, not oranges.
Who is a guarantor mortgage suitable for?
The biggest one is probably First Time Buyers looking to jump onto the property ladder. Maybe they’re buying on their own or they just don’t quite have enough deposit together.
There are some really big challenges, particularly if you’re buying on your own. How do you get enough borrowing based on your income to get the property you like? How do you save for a deposit with rents going up?
That’s why the most typical client is a First Time Buyer. That doesn’t mean it’s only available for First Time Buyers. I’ve also helped clients who are getting divorced and need a bit of help from mum and dad to take over the house. The parents come on board to support them with keeping their home.
How do you qualify for a guarantor mortgage or a JBSP?
Normal mortgage rules apply. Lenders look at your credit history, your income and outgoings. They’ll want to understand how many children or dependents you have.
The only difference is around whoever’s coming on to the mortgage. They might have to be a relation, potentially, although not in all cases. The age of the person coming onto the mortgage is also important.
You might be a young First Time Buyer, age 25 perhaps, but perhaps dad is in his 60s – in which case the length of the mortgage might be limited. A broker or advisor can help you navigate those technicalities.
What documents should I provide for a guarantor mortgage?
The main documents for a guarantor mortgage application will be proof of identity for all applicants – you and the guarantor.
That’s usually a passport, driving licence and proof of income. If you’re employed, we need payslips for the last three months, generally. If you receive any bonuses, we need payslips to evidence those as well.
If you’re self-employed, it’s tax calculations from HMRC or company accounts. Other documents will include bank statements for the last three months, for a lender to get a good picture of your income and outgoings.
Credit reports are good to have as well, to evidence all your financial commitments – loans, car finance and credit cards. We can check whether you’ve had any issues in the past or if anything shouldn’t be there.
The bank or building society you apply with will assess every borrower in the same way. Whatever documents are required for you will likely be required for the guarantor as well.
They have to do a full affordability assessment of all borrowers on the application.
Who can guarantee a mortgage?
A lot of lenders do prefer a relation to support the mortgage. Most commonly it would be mum, dad, brother, sister, perhaps uncle, auntie or grandparents. A select few might accept a very generous friend.
What are the risks or disadvantages involved with a guarantor mortgage?
It’s good to be clear about the risks of being a guarantor. This is something that every lender will want you to be really clear on, as well. Most lenders insist on a guarantor getting independent legal advice with a solicitor, to lay out those risks and what it entails to be a guarantor.
Essentially, if the mortgage is not paid on time, you are liable for that debt as much as the other borrowers. You’re responsible for making sure the mortgage payments are made. If anything does happen, you are liable and responsible for that debt – and that’s a big risk.
If we’re looking at Joint Borrower Sole Proprietor, you’d be liable for a debt against a property you don’t own and you have no financial interest in. It is quite a high risk, depending on who the borrower is. A lot of parents will have an element of trust for their son or daughter to make the payments. Maybe there will be a bit of financial support going on as well.
But you should only enter into that if you are comfortable doing so and you’re fully clear on the risks. That’s why banks and building societies insist on proof that you’ve had independent legal advice.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Approved by The Openwork Partnership on 30/04/2025.
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Do I need a guarantor? (Part 2)
Lee Gathercole and Neezam Romjon answer more questions on guarantor mortgages. Episode two of two.
Podcast approved by The Openwork Partnership on 30/04/2025
How much does a guarantor need to earn for a mortgage?
There’s no set answer for this. It depends on the circumstances, and which bank or building society you’re applying with. They will look to establish whether there is income available to support the affordability for the mortgage you’re applying for.
Effectively, the key is whether more money is coming in for the guarantor than going out. If you’re bringing someone onto a mortgage as a guarantor, but they’ve got quite large debts and financial commitments, it might not actually add much value to a mortgage application.
Equally, someone with a lower income may have very few outgoings. Maybe they live in a property with no mortgage and their household costs are very low. That might actually add more value to your mortgage. A lender might be able to use more of that person’s income to get the borrowing you need.
It’s not straightforward. It’s based on a full affordability check by the lender. There is no minimum amount a guarantor needs to earn, but generally a higher income will add more value and get you a bigger mortgage.
What happens if my guarantor is unable to make repayments too?
We shouldn’t say guarantor, because it’s generally going to be a Joint Borrower Sole Proprietor mortgage. If you’re both named on the mortgage application, you are both equally liable for the payments.
If both of you weren’t able to make those payments, you would both receive the same impact. The missed payments would be recorded on your credit files and it could really affect your credit history.
The emphasis is on both of you to make those mortgage payments because you’re both named on the mortgage. A missed mortgage payment can cause big issues further down the line.
Can I get a guarantor mortgage for a Buy to Let property?
It’s not something we see too often. A guarantor is generally there to help you borrow more for a mortgage. For a residential mortgage on a property you’re going to live in, the amount you can borrow is based on your personal income and affordability.
With Buy to Let mortgages, affordability is calculated and looked at differently. Banks look at the rental income that will be generated from letting that property out. The question is whether the rental income will cover the mortgage payments, so having a guarantor for affordability is less relevant.
There may be benefits to getting a Joint Borrower Sole Proprietor Buy to Let mortgage. There could be stamp duty advantages, or the guarantor could help you qualify if you don’t have other properties or mortgages in your name. With some lenders that can be really difficult.
Bringing in a guarantor who is a property owner might open up more options for you. But the downside is that not many lenders will consider you on a Joint Borrower Sole Proprietor basis for Buy to Let. There’s not a huge demand for that in the industry at the moment [correct at the time of recording in June 2025].
Can a parent be a guarantor if they are retired?
Yes, absolutely, providing they have an income. Pension income is acceptable, as is investment income. It’s treated in the same way as if you weren’t retired.
If they have an income, they can support you. Some banks have limits around age with a Joint Borrower Sole Proprietor. But if mum or dad are retired and you’re not relying on them to work, some lenders go up to age 90 or even 100. When the guarantor is in receipt of pension income, lenders can really push those limits.
What happens if my guarantor dies?
If it’s a joint mortgage, you’re jointly liable and responsible for the entire debt – that’s regardless of whether it’s a guarantor mortgage or not.
Let’s say there are two people on a Joint Borrower Sole Proprietor mortgage. If the guarantor were to die, the other borrower is responsible solely for managing that debt and making sure the payments are made on time.
The easy way to plan for this is with a life insurance policy. If you are relying on that person to support you financially and they pass away, you could be in a financially vulnerable position. You might not be able to maintain the mortgage payments.
But with life insurance in place, that could pay you a cash lump sum. That might clear the mortgage completely, or support you financially. That could put you in a much stronger position and avoid putting your home at risk. This situation can be a reality, because generally guarantors are older.
It’s something that we would advise planning for, and making sure you’ve got the right insurance policies in place.
Do guarantors get credit checked?
Yes. With Joint Borrower Sole Proprietor, the guarantor is named on the mortgage application as if they were buying the property. You’re just not an owner of the property.
As you’re named on the mortgage and responsible for paying it, you will be credit checked as if you were buying the property yourself.
Lenders want to make sure that you’re credit worthy, so that if the person you’re supporting to buy the property is unable to make payments, you can make them yourself. The same rules apply as if you were applying for a mortgage.
They look at your credit commitments and whether you have kept things up to date. They may accept some missed payments, but overall, you will be treated the same as if you were buying the property yourself.
Can I stop being a mortgage guarantor?
Yes, you can stop being a mortgage guarantor, providing the bank is happy to take you off the mortgage application.
A common scenario is where a parent is helping a child who is at the start of their career. The parent is at the height of their career and has a higher income to use – that’s generally the scenario we see.
If the parent in this situation wants to come off the application, the bank will reassess affordability. If they’re removing you, they want to make sure your child can manage that debt on their own. Perhaps their income has increased and the lender will now be quite comfortable lending to them.
Or, your child may add someone else to the mortgage instead. Perhaps they’ve now got a partner to co-own the home. That might involve remortgaging to another lender with their partner instead. The new mortgage will be in joint names with a partner rather than a parent.
But you can’t just decide not to be a guarantor anymore. When you enter those agreements, you’re committing legally and you can’t walk away. In the bank’s eyes, you’re jointly liable until you are removed from the mortgage application.
Can I get a guarantor mortgage with bad credit?
Yes, potentially. Some lenders are accepting of blemishes on your credit file, such as missed payments, defaults or maybe a County Court Judgement (CCJ).
It depends on the severity, and you would be limiting your pool of lenders even more. As you can imagine, only a few lenders offer Joint Borrower Sole Proprietor mortgages. If we’re then adding credit blemishes or adverse credit into the mix, that can really limit your options.
It’s not impossible. An advisor or a mortgage broker can help you understand your options based on your credit file.
How do I get a guarantor or JBSP mortgage?
This is an area of the market we specialise in and it’s definitely something we help a lot of clients with. The key is helping people understand how it works, and identifying the risks with a Joint Borrower Sole Proprietor mortgage.
It’s then a case of finding the most suitable lender from those we’ve got access to and that is offering a competitive deal. You can go it alone and do your own research – there’s nothing stopping you.
But I would say this is a complex kind of mortgage and I advise leaning on an advisor that specialises in that area, whether it’s us or another broker. That is definitely going to put you in a good position.
What else do we need to know about guarantor mortgages and Joint Borrower Sole Proprietor schemes?
I’d just echo what Neezam just said – it’s such a minefield to understand your options. As a reminder, if you’re looking for guarantor mortgages, they’re a bit old hat now.
The new one coming through is Joint Borrower Sole Proprietor. If you’re thinking about this, just seek some advice as it’s quite a complex type of mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
Approved by The Openwork Partnership on 30/04/2025.
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