Guarantor Mortgages

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:

• Affordable Repayments: With the help of a guarantor, you may be able to secure a mortgage with a higher loan-to-value (LTV) ratio, meaning you can borrow a larger percentage of the property value. This can help make your monthly repayments more affordable.
• Expert Support: Our team of mortgage experts is dedicated to helping you every step of the way, from application to completion. We will guide you through the process, answer any questions you may have and ensure you get the best deal possible.
• Fast and Easy Application: Our online or in branch application process is fast and easy, allowing you to apply for a Guarantor Mortgage from the comfort of your own home or side by side with one of our advisors.

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:

1. Responsibility for repayments: The guarantor 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.
2. Impact on credit history: If the borrower defaults on their mortgage repayments and the guarantor is required to repay the loan, this could have a negative impact on the guarantor's credit history.
3. Risk of losing the property: If the borrower is unable to repay the mortgage, the lender may take possession of the property. This could result in the loss of the property for both the borrower and the guarantor.
4. Responsibility for the property: The guarantor is also responsible for the property and may be held liable for any damage caused to the property.

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.