Does being a guarantor affect your ability to get a mortgage?
- Mortgage brokers and lenders could consider potential loan payment that you could be liable for as the loan backer.
- The mortgage lender may need to be satisfied that you can afford the mortgage as well as these loan repayments.
- There’s a possibility that this could reduce your affordability for a new mortgage and the amount you could borrow.
If you are considering a mortgage, we suggest you take professional independent financial advice prior to signing the guarantor agreement.
Apart from this, so long as you have a clean credit file, taking on this responsibility should not affect your mortgage eligibility.