Guarantor Mortgages for First-Time Buyers

A guarantor mortgage lets someone, usually a parent, promise to cover your mortgage payments if you cannot. That promise reduces the lender’s risk, which can mean you borrow more than your own income allows, or get a mortgage at all.

In 2026 the market looks different from a decade ago. Fewer lenders offer traditional guarantor mortgages, and most family-backed lending now uses a joint borrower sole proprietor mortgage or a savings-backed mortgage. This guide explains all three so you can compare them properly.

How a guarantor mortgage works

• You take out the mortgage and own the home, usually in your name alone.
• Your guarantor signs a legal guarantee that they will pay if you do not.
• Depending on the product, the guarantee may be backed by their income, their savings or a charge over their own home.
• Your guarantor does not live in the property and does not own any of it.
• If you keep up your payments, your guarantor never has to pay anything.

The three main types of family-backed mortgage

Type	How your family helps	What your family risks	Do they own part of the home?
Traditional guarantor mortgage	Guarantees your payments, sometimes backed by a charge on their home	Paying your mortgage, and in some cases their own home	No
Joint borrower sole proprietor	Joins the mortgage so their income counts towards affordability	Full liability for the whole mortgage	No
Savings-backed mortgage	Places savings in a linked account as security for a fixed period	Some or all of those savings if payments are missed	No

Traditional guarantor mortgage

Your guarantor’s finances back your loan. Some lenders take a legal charge over the guarantor’s home, which means it could be at risk if you fall behind and they cannot pay. This is the most serious commitment for a family member, and fewer lenders now offer it.

Joint borrower sole proprietor

A parent or relative goes on the mortgage with you, so the lender counts both incomes, but only you go on the property’s title. Because they are a borrower rather than a guarantor, they are jointly liable for the full mortgage from day one. Many first-time buyers who would once have used a guarantor now use this route. Read our joint borrower sole proprietor guide.

Savings-backed mortgage

A family member deposits savings, often a percentage of the price, into an account linked to your mortgage. The savings are held for a fixed period, commonly a few years, and returned if you keep up your payments. This can allow you to buy with little or no deposit of your own. See our Family Springboard mortgage guide.

Whole-loan or shortfall guarantee

Some guarantees cover the whole mortgage. Others are limited to a set amount, often the gap between what you could borrow alone and what you need, or the shortfall if the home were sold for less than the debt. A limited guarantee reduces your guarantor’s maximum exposure, so ask exactly what they are signing.

Who can be a guarantor?

Each lender sets its own rules, but guarantors are usually:

• A close family member, most often a parent or grandparent. Some lenders accept other relatives.
• Resident in the UK, with a good credit history.
• Able to show the lender they could afford your mortgage payments as well as their own commitments, or have enough equity or savings to support the guarantee.
• Within the lender’s age limits, which matter because the guarantee may run for many years.

Do guarantors get credit checked?

Yes. The lender checks the guarantor’s credit history, income and commitments, much as it checks yours. A guarantor with recent credit problems is unlikely to be accepted.

Can you be a guarantor if you have your own mortgage?

Often, yes, if your income or equity supports both commitments. The lender looks at whether you could still afford your own mortgage and bills if you had to cover the guaranteed payments too. Acting as a guarantor can also reduce what you could borrow yourself in future, so think about any plans to remortgage, move or help another child.

How a guarantor can increase what you borrow

Lenders normally limit borrowing to a multiple of your income after looking at your outgoings. Adding a guarantor’s or joint borrower’s income can lift that limit.

Use our affordability calculator for an initial estimate.

Can you get a guarantor mortgage with bad credit?

Possibly. A strong guarantor can reassure a lender about affordability, but it does not erase your own credit history. Recent defaults or County Court Judgments may still lead to a decline, so check your credit files first and speak to a broker before applying. See our bad credit mortgage guide.

Do guarantor mortgages cost more?

Rates depend on the product and your loan-to-value rather than the guarantee itself. Because fewer lenders offer guarantor and family-backed products, you have less choice, so compare the total cost with a standard mortgage or a gifted deposit.

What happens if you miss payments?

If you fall behind, the lender will normally ask you to pay first. If you cannot, it can ask your guarantor to pay the arrears and, depending on the guarantee, the ongoing payments. Where the guarantee is secured against their home or savings, the lender could ultimately take that security. Missed payments can also affect both your credit records.

That is why lenders usually require the guarantor to take independent legal advice before signing. It is also why the conversation within your family needs to cover what happens if circumstances change, such as job loss, a relationship ending or the guarantor retiring.

Is a guarantor mortgage right for you?

It can make sense if:

• Your income is the main obstacle and is likely to rise.
• You have a reliable family member who fully understands the commitment.
• You want to buy now rather than wait several years to save or earn more.

Think carefully if:

• You would struggle with the payments even with a rising income. A guarantor does not make an unaffordable mortgage affordable.
• Your guarantor is close to retirement or relies on their own home for their future.
• A smaller purchase or a bigger deposit would get you there without anyone else taking the risk.

Getting the guarantor removed

Guarantees are often meant to be temporary. Once your income has grown or you have built up equity, you may be able to remortgage into your sole name and release your guarantor. This depends on the lender’s affordability checks at that time, so it is not guaranteed.

Alternatives worth comparing

• Gifted deposit. A one-off gift towards your deposit, with no ongoing liability for the giver.
• Shared Ownership. Buy a share of a home, so the mortgage you need is smaller.
• 5% deposit mortgages. If your income supports the mortgage on its own and you have a small deposit, a standard 95% mortgage may work. See our first-time buyer deposit guide.
• Lifetime ISA. A 25% government bonus on savings of up to £4,000 a year towards a first home costing up to £450,000.

Our first-time buyer mortgage guide explains every option side by side.

Guarantor mortgage FAQs

Talk it through with us, and bring your family

We regularly help parents and first-time buyers compare a guarantor mortgage, a joint borrower sole proprietor mortgage and a gifted deposit, so the family can see exactly who is taking on what. Your initial consultation is free.