Guarantor mortgages
EML Financial Services Limited is owned by four of the partners in Emsleys Solicitors. EML Financial Services is regulated by the Financial Services Authority.
With first-time buyers finding it increasingly difficult to get on the first rung of the property ladder many are turning to their parents or close family members for help. This is where guarantor mortgages are helping many.
Guarantor mortgages work by third parties agreeing to cover either the full mortgage amount, or any shortfall that cannot be paid. For this arrangement to work the lender must first assess the suitability of the guarantor and ensure that they are in a position to cover the full loan amount if needed.
In the long-term the most common outcome of this type of investment is that the guarantor holds the mortgage in the borrower’s name until they are able to take full responsibility for the repayments.
How we can help
Guarantor mortgages are increasing popular and widely available. However, because they require a number of individuals to be involved it’s essential that you seek advice on the precise working and possible consequences.
We can advise you on the best options available as well as explaining the ways in which guarantor mortgages can work for all parties involved.
