Page 19 - April 2024

PROPERTY ADVICE
EXPERT ADVICE

What is a guarantor mortgage? A home with history

ESPC Mortgages’ Paul Demarco shares everything you need
to know about guarantor mortgages.

A as ‘sole proprietor/joint on the guarantor’s income, with any mortgages
guarantor mortgage, more commonly
known
or loans they have taken into account. The
borrower’, is a type of mortgage where
guarantor; the average age for parents acting
the applicant’s borrowing power is enhanced mortgage term is determined by the age of the
by the security of a higher earner forming part as guarantors is around 50-55, meaning that the
of the application, effectively helping first-time mortgage term could be around 15-20 years.
buyers to get onto the property ladder.
Some lenders only require a 5% deposit, but
The guarantor is liable for the mortgage if 10% is more common. Gifted deposits can
the applicant stops making repayments to be used for guarantor mortgages, and some
their lender. The applicant is therefore less of lenders will now accept deposits that have
a risk, as the lender can recover their money if been gifted by friends, although many prefer
the applicant defaults on repayments. immediate relatives.

Usually, the guarantor is the applicant’s Guarantor mortgages are only available for
parent/s, and the applicant is a student or low- residential mortgages and cannot be used Thinking of buying a home with protected status?
income earner. However, the guarantor doesn’t for buy-to-let mortgages or shared equity Here’s everything you need to know.
need to be a blood relative – a friend can be a schemes. There can be up to four applicants
guarantor if they meet the criteria. for the same mortgage, and all applicants can
reside in the property, making this a popular cotland is well known all over the world for outstanding examples of a particular period,
Not all lenders offer guarantor mortgages, choice for siblings or friends choosing to buy its wealth of stunning period properties. style or building type. Examples of Category A
and those that do tend to enforce a more a home together, with the help of a guarantor SOur beautiful country is filled with unique buildings in Edinburgh include Dundas Castle,
restrictive lending policy than would normally – however, independent legal advice is required buildings of all sizes and descriptions - from Custom House and Lamb’s House in Leith,
apply. Affordability is predominantly assessed for all applicants. manor houses and medieval castles to stone Fettes College and many of the beautiful
steadings and Georgian townhouses. Whatever homes on Ann Street in Stockbridge – so you
their appearance, they display charm and can understand the standard a building must
character in abundance, and offer decades, achieve to be bestowed an ‘A’ rating.
often centuries, of history and mystery. So, for
ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer mortgage many, owning one of these homes could be a Category B represents buildings of regional
advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch with the team dream come true – but of course, there are a importance, with examples including the
on 0131 253 2920 or fsenquiries@espc.com.
few things to be aware of before you commit to Balmoral Hotel, Edinburgh’s Colony houses, the
owning a home with true character. Sheep Heid Inn and Portobello Town Hall.
The initial consultation with an ESPC Mortgages adviser is free and preparation of the information, no responsibility is accepted for any errors
without obligation. Thereafter, ESPC Mortgages’ charges for mortgage which, despite our precautions, it may contain. There are around 47,000 listed buildings Buildings given a Category C listing are those
advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A The Financial Ombudsman Service is available to sort out individual in Scotland, split into three categories: A, B which are deemed to be of local importance,
MORTGAGE OR OTHER LOANS SECURED AGAINST IT. complaints that clients and financial services businesses aren’t able to and C. Category A is for buildings of national such as the Granton Lighthouse on Edinburgh’s
resolve themselves. To contact the Financial Ombudsman Service, please
visit www.financial-ombudsman.org.uk. or international importance, or special north coast, the Rusacks hotel in St Andrews,
The information contained within this article is subject to the UK
regulatory regime and therefore restricted to consumers based in the UK. ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants architectural or historic interest, which are and Robert Smail’s Printing Works in the Borders.
It has been provided in good faith. Whilst every care has been taken in the Ltd which is authorised and regulated by the Financial Conduct Authority.
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