The guarantor needs to either own their property outright or owe less than 80% of the property value on their mortgage.
Does a guarantor have to own their own house?
Yes, neither you nor your guarantor needs to own your home to get a guarantor loan from Amigo. However, your guarantor may have a stronger chance of being accepted if they do own their own home. Your guarantor could be a friend, family member, partner, work colleague or a fellow tenant who you share a rented home with.
Does being a guarantor affect getting a mortgage?
Being a guarantor shouldn’t affect your ability to get a mortgage, unless you’re then called upon to make repayments. Since you would be inheriting the debt, this will put you at risk of not being able to repay and this can ultimately decrease your credit score if you don’t keep up with repayments yourself.
Does a guarantor have to be working?
A Guarantor must be working AND a homeowner. This is because they need to be able to afford the rent as if they were paying it anyway. It is also important to note that your Guarantor must earn at least 30x the monthly rental income per annum.
How much money do you need to be a guarantor?
How much money do you need to earn to be a guarantor? Usually guarantors are expected to be making at least three times the annual rent price of the property in order to be accepted by the letting agent or private landlord.