Guarantor mortgages
With a guarantor mortgage, your family could help you get your foot on the property ladder.
It can be tricky to get a mortgage if you’re struggling to save a large enough deposit, have a low income or have limited credit history. But family support can boost your chances of being approved.
We explain your options when it comes to guarantor mortgages.
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Last reviewed by John Fraser-Tucker on 4th August 2025
What is a guarantor mortgage?
A friend or family member, usually a parent, puts down their own property or savings as security for the loan. This can replace the need for you to put down a large deposit and, in some cases, you may even be able to borrow 100% of the property’s value by using a guarantor’s collateral as security.
Your guarantor won’t own a share of the property but they will agree to step in and cover your mortgage payments if you’re not able to. This improves the likelihood of a lender approving your mortgage as they have greater confidence that it’ll be repaid.
A guarantor mortgage can be a great option if you’re a first-time buyer finding it difficult to get a mortgage on your own. However, it’s a big decision for the guarantor as their home or savings are at risk if you don’t keep up with your repayments. You really do all need to understand the risks before diving in and making a mortgage application.
How does a guarantor mortgage work?
A guarantor mortgage works by asking a loved one to use their own property or savings as security for your mortgage. This gives the lender more confidence to approve your application, even if you have a small deposit or a lower income.
Here’s a step-by-step breakdown of how to get a guarantor mortgage.
“A guarantor mortgage is most suitable for someone who’s able to comfortably afford monthly mortgage payments, but who’s struggling to meet the lender’s eligibility criteria for whatever reason. Think of a guarantor as a safety net for the lender, rather than for you. It’s really important to work out your monthly budget carefully to make sure you’re in a financial position to make your mortgage payments, to avoid having to rely on your guarantor as a last resort.”
Luke Hollingdale, Mortgage Expert
Advantages of a guarantor mortgage
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Improve your chances of mortgage approval. With a guarantor on your side, lenders might see you as a lower-risk borrower. This could increase your chances of getting approved.
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Buy a home with a smaller deposit. A guarantor can help you secure a loan for up to 100% of the property's value, so you can step onto the property ladder much sooner.
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Borrow more. Having a guarantor could allow you to borrow more money than you would otherwise be able to.
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Build your credit history. Successfully managing a mortgage is a great way to improve your credit score, which can support future credit applications.
Disadvantages of a guarantor mortgage
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Significant risk for your guarantor. They are legally responsible for the debt if you don’t make your repayments. Worst-case scenario, they could even lose their own home or savings.
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Negative impact on your relationships. Money and family can be a tricky combination. If you struggle to pay your mortgage, it can create issues between you and your guarantor.
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Your guarantor’s borrowing capacity could be affected. Acting as a guarantor can impact their ability to get credit, as lenders will consider the mortgage commitment when assessing their finances.
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Removing a guarantor can take time. You’ll need to have paid down a significant portion of your mortgage balance and the property must have increased in value, which can sometimes take several years.
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Potentially higher rates. Higher loan-to-value (LTV) mortgages typically carry higher interest rates than lower LTV options, and you may find guarantor mortgages are more expensive than standard ones too. However, because a guarantor reduces the lender's risk, you may be able to secure a lower interest rate than you would if applying on your own.
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Alternative ways your family can help you buy a home
Family assist mortgages
A family assist mortgage (sometimes called a family deposit or family offset mortgage) allows a family member to place a portion of their own savings or home equity into a special savings account held by the lender as security. This security boosts your deposit, enabling you to get a mortgage with little to no down payment. As long as you keep up with your mortgage payments, your family member's funds will typically be returned to them after a set period of time or once a significant proportion of your mortgage has been paid off.
Joint Borrower Sole Proprietor
A Joint Borrower Sole Proprietor mortgage allows one or more people to join your mortgage, but only one person is the legal owner of the property. It allows the lender to assess the combined income of all borrowers, boosting your borrowing power and increasing the likelihood of being accepted for the mortgage you need.
Difference between guarantor mortgages and family assist or JBSP mortgages
| Guarantor mortgage | Family assist mortgage | Joint Borrower Sole Proprietor mortgage |
|---|---|---|---|
How does it work? | The guarantor puts down their savings or equity from their own home as security, and agrees to be legally responsible for the mortgage debt if the borrower defaults. | A family member deposits savings or uses equity from their own home as security for the borrower's mortgage. | One or more people are added to the mortgage application to boost borrowing power. |
Who is on the property deeds? | The main borrower(s) only. | The main borrower(s) only. | The main borrower only (known as the sole proprietor"). |
Who is responsible for payments? | The main borrower is responsible for all monthly payments but, if they fail to pay, the guarantor is legally liable for the payments. | The main borrower is responsible for all monthly payments - family members won’t be liable for the debt if they fail to pay but the funds or collateral used to secure the mortgage may be affected. | All parties on the mortgage are jointly liable for paying the mortgage, but it's usually expected that the property owner will pay. |
What is used as security? | The guarantor's own property or savings. | The family member's savings (held in a special account) or equity in their property. | The property itself. |
What is the main benefit? | Allows you to get a mortgage with a small or no deposit and/or a low income. | Enables you to use a family member's assets as a substitute for a deposit. | Significantly increases the total amount you can borrow by combining incomes. |
What is the main risk? | The guarantor could lose their own home or savings if the borrower defaults and the property sale doesn't cover the debt. | The family member’s savings are locked away for a fixed period and could be lost if the property is repossessed (though this is very rare and usually a worst-case scenario). | Everyone on the mortgage is legally responsible for the payments so any missed payments will impact everyone’s credit score. |
What happens when your financial situation changes? | The guarantor can be removed once the borrower has built up enough equity in the property. | The security is released automatically after a fixed period, provided all mortgage payments are up to date. | All parties must agree to remortgage the property into the sole name of the owner, who needs to prove they can afford the mortgage on their own. |
Your family may also be willing to give you money to put towards a deposit. A gifted deposit can be a more straightforward way of offering support, though of course it does involve parting with a large sum of cash. They’ll likely need to write a letter proving that the money is a gift, and not a loan.
If you aren’t able to turn to family or friends for help, there are a few zero deposit mortgage products available from select lenders. These are rare, though, and often come with higher interest rates. It’s worth speaking to a broker if you’re interested in a low deposit mortgage option.
Who is a guarantor mortgage for?
A guarantor mortgage could be a good option if you’re financially able to afford your monthly mortgage payments, but struggling to get approved for a mortgage on your own. This can happen for a number of reasons:
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You don’t have a large enough deposit. We get it - saving for a deposit can be tough. A guarantor mortgage can help you get on the property ladder sooner by allowing you to secure a mortgage even with a small deposit (or, in some cases, with no deposit at all).
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You have a low income. Lenders typically allow you to borrow around 4 or 4.5 times your salary. If your salary doesn’t allow you to borrow enough to buy a suitable property, having a guarantor can help to increase the amount you’ll be able to borrow.
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You have a limited or poor credit history. If you haven't had the chance to build a credit score, or have had financial issues in the past, lenders may be hesitant to approve a mortgage. A guarantor could give the lender the confidence they need to approve you.
Who can be a guarantor for a mortgage?
While in theory anyone can be a guarantor for a mortgage, lenders do have strict criteria that a person must meet. Most lenders prefer, and some insist, that the guarantor is a close relative like a parent or grandparent. There are also likely to be age restrictions (for example, your guarantor may need to be over the age of 21 and under 75 years old).
The most critical factor, however, is that your guarantor is financially secure. They should have a good income (enough to support the mortgage repayments if they need to), strong credit history and have significant savings or equity in their property (at least 30% or more, for example).
It’s worth speaking to a mortgage broker if you’re considering getting a guarantor mortgage, or becoming a guarantor for someone else. They’ll compare lender requirements and recommend the most suitable one for you and your individual circumstances.
Guarantor mortgages FAQs
If your financial situation has improved enough to be eligible for a mortgage on your own, and you’ve built up a decent amount of equity, it is possible to remove a guarantor. You’ll need to apply to your lender to have your guarantor released.
Yes, it almost certainly will. When your guarantor applies for their own mortgage, lenders will see their commitment to your mortgage as a potential future outgoing. They have to factor in the "what if" scenario where they might have to cover your payments, which will reduce the amount your guarantor can borrow for themselves. Any potential guarantor will have to consider this really carefully before they agree to help.
Your guarantor must get independent legal advice to ensure they have a crystal-clear understanding of the risks and the commitment they are making. In fact, almost all lenders will insist that your guarantor has received independent advice.
You may be able to access a larger borrowing amount than you’d be able to if you were borrowing on your own. Not only does a guarantor mortgage help you to boost your deposit, but both your finances and your guarantor’s finances may be taken into account during the lender’s affordability calculations.
If you are unable to make your payments, the lender will contact your guarantor to cover the missed amount.
In an absolute worst-case scenario where your guarantor is also unable to afford the mortgage payments, the property would be repossessed. If it needs to be sold for less than the outstanding mortgage balance, the guarantor would also be responsible for paying the shortfall, potentially from the security they initially provided. It’s worth reiterating that this is an extremely rare situation and lenders are usually able to work out alternative arrangements long before this point.