Are you a first-time home buyer or need help to finance a house move? If so, a Guarantor Mortgage may be the right solution for you. At Swansea Building Society we understand that securing a mortgage can be a challenging process, especially for those with limited financial resources. That's why we are committed to providing a range of mortgage options that cater to your specific needs and help you achieve your dream of homeownership.
A guarantor mortgage is a type of home loan where a third party guarantees to repay the mortgage if the borrower is unable to do so. This type of mortgage is typically aimed at first-time buyers or those moving home who may find it difficult to secure a mortgage on their own. By having a guarantor, the lender is provided with extra security and assurance that the mortgage will be repaid, even if the borrower encounters financial difficulties.
The guarantor, who is usually a close relative such as a parent , is responsible for repaying the mortgage if the borrower defaults on their payments. This means that if the borrower fails to make their mortgage repayments, the guarantor is responsible for making up the shortfall.
At Swansea Building Society we offer a range of benefits for our Guarantor Mortgage customers, including:
To apply for a Guarantor Mortgage from Swansea Building Society both the borrower and the guarantor must meet the following requirements:
The buyer to borrow up to 80% of a property's value. A family member must then guarantee the amount borrowed and if the buyer cannot pay the mortgage payment, the guarantor will be expected to make the payment. We do not ask that the family member guaranteeing the mortgage offers their own property as collateral against the property. However, the guarantor must be able to demonstrate that they can afford to meet the monthly repayment from their own income. This means that, in the worst case scenario, a guarantor could lose their home to cover the debt. But if no repayments are missed, it won't cost the guarantor a thing.
All our residential mortgage products are available for Guarantor mortgages up to 80% LTV maximum.
While a guarantor mortgage can provide many benefits, it is important to understand the potential risks involved. These include:
At Swansea Building Society we are dedicated to helping you achieve your dream of homeownership. With our Guarantor Mortgage solution, you can get the financial support you need to secure a mortgage and make your dream of owning a home a reality.
Don't let a limited credit history or financial resources hold you back. Apply for a Guarantor Mortgage today.