What is a guarantor mortgage and is it a good idea?

Question asked by: mrquestion

Asked on: 05 Jan 2010

A guarantor mortgage is one for those who for some reason are perceived to have quite a bit of risk and therefore there is a guarantor in place, someone who guarantees the mortgage will be paid, to mitigate the lenders risk.

For instance this may well be a product for a student or someone who has just started their first job and therefore the guarantor (often the parents) will take on board the potential requirement to pay off the mortgage should the person that takes it out defaults or is unable to meet their payments, and possibly could even have their own home repossessed therefore it is a serious responsibility to go guarantor.
By: knowitall
Replied at: 05 Jan 2010
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