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Parent Guarantor Mortgage

Charlie Connolly explains how a parent guarantor mortgage works.

Can parents be guarantors for a mortgage? Can you use your parents as a guarantor?

Guarantor mortgages aren’t as common as they were a few years ago, where you would use your parents’ income to support your mortgage application.

The issue with guarantor mortgages was that the parents ended up on the property deeds – so they weren’t just on the mortgage, they were also the owners of the property. This meant having to pay higher stamp duty costs, which can be expensive.

Now there is a new type of scheme available, which is very similar to parent guarantor mortgages, called Joint Borrower Sole Proprietor (JBSP). It’s very similar, but the guarantor isn’t named on the deeds, so there’s no additional stamp duty.

Is it easier to get a guarantor mortgage with your parents?

Basically, I’m going to talk about JBSP mortgages from this point forward. If you aren’t able to reach your borrowing requirements, you need this. It could be your only option.

The process is very similar to a standard mortgage. Lenders will look at both your incomes and expenditure, as well as your guarantors’, and will determine if the mortgage is affordable on this basis.

Is there an age limit when parents are mortgage guarantors?

This could be one of the potential sticking points for a Joint Borrower Sole Proprietor mortgage. Most high street lenders will only allow the term to run up to age 70 or 75, depending on the parents’ occupations.

If your parents are already in their late fifties, it means the mortgage term will be quite short. It could mean the mortgage repayments are a lot higher.

Some lenders will go over age 70, but it usually depends on whether the guarantor pays into a pension. One lender actually goes up to 80, depending on occupation, so there are some ways of keeping the mortgage payments down [information correct at the time of recording in November 2025].

What are the risks to parents of being a guarantor on a mortgage?

The big risk is that they could potentially lose their house if you don’t keep up with repayments. It’s as simple as that. A guarantor would have to receive independent legal advice to outline the risks involved in this type of transaction.

Do the parents and child both need good credit for a guarantor mortgage or a JBSP mortgage?
Yes, all the applicants will need to pass the lender’s credit score to proceed with this type of mortgage.

Can a parent and child get a guarantor mortgage with a gifted deposit? Do you need a deposit for a guarantor or JBSP mortgage?

If a deposit is coming from the guarantor, or the mortgage is a Joint Borrower Sole Proprietor, it may not be classed as a gift. Effectively it will be from a mortgage borrower.
But yes, you do still need a deposit for this type of mortgage.

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What power does a parent guarantor actually have?

A guarantor wouldn’t necessarily have any powers above the main buyer. When an application is put in, it’s assessed as a joint mortgage. All applicants are equally responsible for paying that mortgage.

If the son or daughter hasn’t paid their mortgage, it becomes the parent’s liability. From a lender’s perspective, it’s both parties’ responsibility to make the mortgage payment.

If a parent is a guarantor on a mortgage, how long are they liable?

They’re liable for as long as they’ve agreed to the mortgage. If it’s a 20-year mortgage, they’re liable for the full 20 years.

However, if you take out a five-year fixed deal, for example, the circumstances can be reviewed every five years. Perhaps by then the son or daughter can afford the mortgage based on just their income, and the parents can then be removed as a guarantor.

It may also mean that you are able to lengthen the mortgage term and make the monthly payments slightly lower.

Do parents need to already own their own property to be a guarantor?

No, not necessarily. But on most occasions, they will normally already own their property. They may even be mortgage-free, or almost there. We would do a lender credit check.

Even if parents are renting, they can be just as credible as long as they have kept up with their rental payments and have clean credit histories.

How can a mortgage broker help here? Anything else you’d like to add?

A mortgage broker can help in these circumstances by tailoring a mortgage to meet your circumstances. We’ll find the most appropriate lender for you.

A good broker will also know the lenders’ criteria, so if your parents are a little older, we can guide you in the right direction. We can find a lender that may consider their income up to age 80.

Key Takeaways:

  • Joint Borrower Sole Proprietor (JBSP) is the modern alternative to old guarantor mortgages; the guarantor is not on the property deeds, which avoids extra stamp duty.
  • Lenders check the income, expenditure, and credit score for both the main buyer and the guarantor for affordability.
  • The biggest risk to the guarantor is the loss of their own property if the buyer fails to keep up with their mortgage repayments. Independent legal advice is required to outline these risks to the guarantor.
  • Most lenders cap the mortgage term to when the guarantor reaches age 70 or 75, potentially leading to higher monthly repayments. Some lenders go up to age 80.
  • Guarantors are liable for the full mortgage term agreed, but their role can often be reviewed and they can be potentially removed as a guarantor after an initial fixed term (such as five years).

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.

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