Guarantor Mortgages UK: How They Work & Who They Suit

What is a guarantor mortgage?

A guarantor mortgage involves a family member (usually a parent) agreeing to cover your mortgage payments if you can't. The guarantor doesn't own a share of the property but takes on legal responsibility for the debt.

Guarantor mortgages can help borrowers who have a low credit score, limited deposit, or income that's borderline for the amount they need to borrow. By adding a guarantor's financial strength to the application, lenders are more willing to lend.

Types of guarantor mortgage

There are several variations of guarantor mortgage in the UK:

• Savings-based guarantor: The guarantor deposits savings (typically 10–20% of the property value) into an account linked to the mortgage. The savings are returned after a set period (usually 3–5 years) if all payments are met
• Property-based guarantor: The guarantor uses their own property as additional security against the mortgage
• Joint Borrower Sole Proprietor (JBSP): Up to four people on the mortgage but only one on the property deeds — avoids stamp duty surcharges for the helpers
• Family springboard: Specific products (like Barclays Family Springboard) where family savings earn interest while acting as security

Risks for the guarantor

Being a guarantor is a significant financial commitment. The main risks include:

• If the borrower can't pay, the guarantor must cover the mortgage payments
• The guarantor's own ability to borrow may be reduced (the guarantee counts as a financial commitment)
• If property-based security is used, the guarantor's home could be at risk
• The guarantee may affect the guarantor's credit score if payments are missed

Eligibility requirements

To be a guarantor, you typically need to be a homeowner (for property-based guarantees), have a good credit history, and have sufficient income or savings to cover the mortgage payments if needed.

Most lenders require the guarantor to be a close family member — usually a parent. Some accept siblings, grandparents, or other relatives, but friends are generally not accepted.

Alternatives to guarantor mortgages

If a full guarantee feels too risky, consider these alternatives:

• Gifted deposit: Family gifts the deposit money instead of acting as guarantor
• Family offset mortgage: Family savings are linked to the mortgage to reduce interest, without being at risk
• Shared ownership: Buy a 25–75% share of a property, reducing the mortgage needed
• Right to Buy: Significant discount on council property purchases

Find the right guarantor mortgage

Not all lenders offer guarantor mortgages, and the terms vary significantly between those that do. A mortgage broker can compare options across the whole market and find the most suitable arrangement for both you and your guarantor.

Nesto matches you with specialist mortgage brokers who can advise on guarantor and family-assisted mortgages. Get matched for free today.