A guarantor mortgage is a home loan where a family member or close relative agrees to cover the repayments if the borrower cannot pay. The guarantor does not usually own a share of the property, but they take on legal responsibility for the debt, often secured against their own home or savings.
These arrangements can help first-time buyers or people with a smaller deposit or limited credit history borrow more than they might on their own. The guarantor must understand the commitment fully, as their finances and property could be at risk if payments are missed. Many lenders now offer joint borrower sole proprietor and family deposit options as alternatives, so it helps to compare the routes with an adviser.