You are here: Home - First Time Buyers -

Case study – Guarantor mortgage

Written by:
Georgia Harris, a 31 year-old employment lawyer, asked her father to guarantee her mortgage when she bought a one-bed flat in central London last year.
Case study – Guarantor mortgage

“Living in London, property is so expensive that I felt I didn’t really have a choice,” explains Georgia. “No mortgage lender would lend me enough to buy a place I wanted to live in, even though I felt that, by cutting back on holidays and things like that, I could manage the repayments on a larger mortgage.”

She took out a guarantor mortgage. The mortgage lender would expect her father to meet her monthly mortgage payment if Georgia failed to do so, and could potentially repossess her father’s home if her father could not pay off Georgia’s mortgage debt.

But Georgia is confident this situation would never develop. “I would not allow my dad to pay my mortgage, even though he could afford it,” she says. “I’ve got a steady job and income protection insurance so, if the worst comes to the worst and I lose my job, my mortgage is covered.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

How much can you borrow?

A calculator designed to help you understand how much you can borrow towards your property

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

Are you on the right mortgage product?

See how much you could potentially save by remortgaging to a different product
Read previous post:
smiling older lady doing sums on a calculator
Case study – Home reversion plans

Gail Shaw, 77, had previously looked into home reversion plans but was unsure about taking one out.