Content reviewed: 13 January 2026
What are the requirements to be a mortgage guarantor?
Mortgage guarantors must be immediate family (typically parents or grandparents), financially stable with good credit, and usually homeowners with equity. Most lenders require guarantors to be under 70-75 when the mortgage term ends. They must be able to cover payments if the borrower defaults—this is a legally binding commitment that can put their own property at risk.
What is a guarantor mortgage?
A guarantor mortgage uses a family member's property or savings as security, helping buyers with small deposits or limited credit history. The guarantor commits to cover payments if you can't. Your Home Finance explains the risks and finds guarantor-friendly lenders for your situation.
What is a Guarantor Mortgage?
A guarantor mortgage is a type of loan where a third party—typically a parent, grandparent, or close family member—agrees to be responsible for the mortgage payments if the primary borrower cannot make them. This additional security reduces the lender's risk, allowing them to lend to borrowers who might not otherwise qualify.
The guarantor doesn't gain any ownership of the property—you remain the sole owner. However, they take on significant legal responsibility. If you miss payments, the lender can pursue the guarantor for the money. Depending on the type of guarantor mortgage, this could involve the guarantor's income, their savings, or even their property being used as security.
Guarantor mortgages are most commonly used by first-time buyers who have stable employment but haven't been in their job long enough, have limited credit history, need to borrow more than their income alone would support, or lack the full deposit required. They're a way for family members to help you onto the property ladder without directly gifting money, though the risks to the guarantor are significant and must be carefully considered.
Key Features of Guarantor Mortgages
Get on the property ladder when income alone wouldn't be sufficient for the mortgage you need
Parents or family members can help you buy without gifting money directly
Combined income or guarantor's security allows larger borrowing than you'd qualify for alone
You own the property solely—guarantor doesn't gain ownership but provides security
Expert Insights on Guarantor Mortgages
A guarantor (usually a parent or close family member) agrees to make your mortgage payments if you can't. Lenders treat this as additional security, allowing you to borrow more or qualify when you otherwise wouldn't. The guarantor's income and/or property is used as backup. Their commitment is legally binding—if you miss payments, the lender can pursue the guarantor. Most guarantor mortgages are designed for first-time buyers with help from parents.
Being a guarantor is a serious commitment with real risks. If you can't pay, your guarantor becomes liable for the full mortgage payment. If they can't pay either, the lender can force sale of the guarantor's property (if it's a security-based guarantee) or take legal action to recover money. The guarantor's credit rating will be affected by late payments. Family relationships can suffer if payments become problematic. Guarantors should get independent legal advice before proceeding.
Family offset/springboard: Guarantor deposits savings (e.g., 10% of property value) in a blocked account for 3-5 years. This reduces lender's risk, allowing you to borrow at 95-100% LTV. Guarantor gets their savings back with interest after the period if you keep up payments. Family mortgage guarantee: Guarantor's property is used as security. If you default, lender can pursue their property. Income boost: Guarantor's income is added to yours for affordability. Each type has different risk profiles.
Guarantors are typically immediate family (parents, grandparents, sometimes siblings). They must be financially stable with good credit, typically homeowners with equity. Age limits apply—guarantors are usually required to be under 70-75 when the mortgage term ends. The borrower still needs provable income and must pass affordability checks based on their own income. This isn't a way to borrow with no income—it's to borrow more or compensate for limited income/deposit.
Plan how and when the guarantor will be released from their commitment. Most lenders allow guarantor release after 2-5 years if: you've maintained good payment history, property value has grown or you've paid down enough capital, and you can afford the mortgage on your own. Remortgaging to a standard mortgage (leaving the guarantor arrangement) is the goal. Ensure the guarantor understands the likely duration of their commitment—it's not usually permanent.
Before considering a guarantor mortgage, explore alternatives: gifted deposit from family (no ongoing liability), joint borrowing (both on the deed and mortgage), family springboard/offset products (savings locked for period), Help to Buy schemes where available, or waiting to save a larger deposit. Each option has different risk/benefit profiles. Guarantor mortgages are less common than they were—many families prefer gifting deposit or joint borrowing instead.
Frequently Asked Questions
Considering Family Support to Buy?
Our advisers will explain all your options—guarantor mortgages, joint borrowing, gifted deposits, and more. We'll help you find the best solution for your family situation.