Guarantor Mortgages

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.

Several UK banks and building societies offer guarantor mortgages, though the product names and structures vary. High street names like Barclays, HSBC, and Nationwide have historically offered family-backed mortgage products, while specialist lenders often provide more flexible options for those needing guarantor support.

Many lenders have moved toward "family springboard" or "family deposit" style products rather than traditional guarantor mortgages. With these, a family member's savings are held as security rather than their property being at risk. Lenders offering these include Barclays (Family Springboard), Tipton Building Society, and Marsden Building Society.

The availability of guarantor mortgages changes frequently as lenders update their product ranges. Some products are only available through mortgage brokers rather than directly. We maintain up-to-date knowledge of which lenders currently offer guarantor options and can match you with the most suitable one for your circumstances.

Explore your options by contacting our team for current availability, or learn about first-time buyer support and adverse credit options.

Guarantor mortgages are particularly popular with first time buyers who have parents or family willing to help them get on the property ladder. For many young buyers, the challenge isn't finding deposit—it's proving they can afford the monthly payments on their income alone. A guarantor mortgage bridges this gap by using family support to strengthen the application.

First time buyers with guarantors can often borrow more than they could independently, access properties in higher price brackets, or secure a mortgage despite having a limited credit history. This is especially helpful in expensive areas where property prices outpace typical first-time buyer salaries. The guarantor provides reassurance to the lender that payments will be made even if the borrower faces temporary difficulties.

For first time buyers considering this route, it's important to have honest conversations with potential guarantors about the commitment involved. The guarantor should understand they're taking on real financial risk and ideally seek independent legal advice before agreeing.

See our comprehensive first time buyer guide for all the support options available, or explore bad credit mortgages if you have credit history concerns alongside needing family help.

If you have bad credit and are considering a guarantor mortgage, options do exist but they're more limited. Some specialist lenders will consider guarantor applications where the borrower has adverse credit—such as CCJs, defaults, or missed payments—provided the guarantor has a clean credit history and strong financial position.

The guarantor's role becomes even more important with bad credit applications. Lenders will scrutinise the guarantor's ability to cover payments, as the risk of the borrower defaulting is perceived as higher. A guarantor with substantial equity in their property and verifiable income gives lenders greater confidence.

Combining bad credit with guarantor support often means accepting higher interest rates and larger deposit requirements. However, successfully maintaining a guarantor mortgage for several years can help rebuild your credit profile, potentially allowing you to remortgage onto a standard product later.

For detailed guidance on combining family support with credit issues, see our bad credit mortgages page or speak to our specialist advisers about your options.