Guarantor Loans
Guarantors normally presenting their own property or the equity as a form of security to guarantee your loan amount in full or proportion.
What does a guarantor on a mortgage do?
In today’s housing market, a guarantor home loan may be the only option for many people. While that can come with many benefits for the homeowner-to-be, it can also put the guarantor in a tricky position if things don’t work out. You need to weigh up the pros, cons and priorities, and decide if a guarantor home loan is right for you.
How It Works?
If you have a close family member with equity in their property (that means they own all or most of the property), they can guarantee your deposit. Of course, you still need to borrow money from a lender and repay it, but the guarantor provides security. That’s the catch: if you can’t repay the mortgage, your guarantor may have to.