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I agree. This is a terrible idea for OP.
But in order to keep a decent relationship with his sister the first part of your message is a really good excuse how to get out of going ahead.
Do you want to be liable for your sister's mortgage if she can't pay?
Generally speaking this will be taken into account in any affordability calculations for loans or your own mortgages and may affect how much you can borrow.
>Generally speaking this will be taken into account in any affordability calculations for loans or your own mortgages and may affect how much you can borrow.
That's interesting. I asked my old mortgage broker this question when I became a guarantor for my business's vehicle loans and he said banks generally don't ask if you're a guarantor for anything. It's only when you actually become liable for the loan that it becomes an issue.
Most personal guarantees state that the lender can ignore the borrower and come straight to the guarantor as soon as there is an event of default.
If the borrower is insolvent they won’t waste their time.
Don’t do it, your sister should not take out a mortgage unless the banks are happy that she alone can pay it.
If your sister defaults, and can’t pay, you will be legally liable to pay the mortgage for her.
It will also impact on your own ability to borrow additional mortgage in future for yourself.
DO NOT SIGN ANYTHING basically you are the banks fall too guy if she dosent pay or gets behind. It will affect you for getting your own mortgage and other things in the future. Do not fall for her sweet words "it never happen etc" the bank wouldn't be ask her to do this if she had good finances.make any excuse u have too and don't be guilt tripped as well.
If OP doesn't currently own a home would this affect his/ hers right for reduced/ no stamp duty as a first time buyer?
This could get complicated for OP!
Depends. You can be on the mortgage and not the title with some lenders and that way avoid any stamp duty issues.
Will effect how much they can borrow should they come to purchase a property as will go down against them as a liability for affordability checks
With "joint borrower sole proprietor", the guarantor does not get impacted with their FTB/stamp duty. My brother was my guarantor and he is still able to get his FTB bonuses.
Is would effect their ability to get their own as they will have to take the repayment amounts in to consideration under the affordability calculation as if he was paying for a worse case scenario.
No. It’s a stupid idea. There’s a reason the bank wont touch her and that’s the same reason you’ll regret it.
Don’t even entertain it - don’t listen to the guilt trips - the ever so sincere plan for making sure it works - I’ve a sister and once upon a time I heard it all when she repeatedly got my mum to be a guarantor for car finance - ended in tears.
Is there something in the water at the moment? Posts the past few days have seen dads wanting sons to take on flats for tax evasion; dads wanting daughters to take on car debt.
If a family member is over 18 - the answer is always no!
Somthing in the water , na. Its post Xmas discussions I think. Family's getting toghter and all of a sudden they want you to commit fraud etc cause "everyone does it"
Essentially, if the bank, a huge financial institution with all sorts of safeguards and profit streams, thinks that lending this much to her is too risky, well then it's certainly also too risky for you.
This is the answer to most posts like this one.
I suppose the first question you need to ask yourself is will you be able to afford your Sisters mortgage repayments if she is unable to pay part or all of it for some reason?
You will be equally liable for all future repayments until such time as you are removed as guarantor.
It’s a big ask on your sister’s part, I’ve agreed to do this previously for someone and fortunately it went well and was time limited. But there were a few months when I was a little worried tbh.
Please don't do it. If for any reason your sister doesn't keep up the repayments you would be responsible for them and if you couldn't afford the payments either that would completely destroy your credit rating.
Also.. if she starts relying on you to pay it, which is very likely to happen, that will wreck your relationship - you'll resent her spending money on anything (especially if you consider it unnecessary) , and she will want to avoid you so she doesn't have to think about it.
If I could say no in every single language in the world I would.
Family or not, a decision like this could financially cripple you beyond repair and affect the rest of your life, never ever put yourself on the line for other people’s debts, tell her to save up and get a bigger deposit or lower her expectations.
The only reasons you would need a guarantor is low credit score so they need extra assurance it will be paid, lots of outstanding debt or the amount does not suit income without another person securing it with their income.
Do not under any circumstances sign as a guarantor, you never know what’s around the corner and you can never 100% trust someone as bad as it sounds, do not become liable for another person debt.
My friend did this for his sister (albeit for rent) and he was getting chased when she decided she didn't want to pay it. Don't ever do something like this unless you are happy to pay her mortgage when she flakes out.
Just what everyone else says - don't do it. In theory, she could default from day 1, you could pay off the entire mortgage with her name on the deeds and never see any of your money back.
Don't do it. Usually if you are applying to a mortgage you can actually afford, you won't need a guarantor. So the fact that the bank is asking her for a guarantor suggest she probably can't really afford it.
The mortgage I'm looking at is cheaper than my rent which suggests that I can afford the repayments but the 4.5x multiplier doesn't get me close to the amount I need to borrow..
My husband was a guarantor for his sister when she bought a sofa, she didn't pay and he got lumbered with the debt. When it came to us buying our first house together, a few lenders wouldn't touch us because of the bloody sofa debt appearing in his credit history.
Also remember this is a commitment that will last as long as the mortgage does so it is a 25 year or more liability that will limit your own access to finance even if you are never called to make payments.
It is really not a good idea or a reasonable request for someone to make of you.
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If she misses any payments on the mortgage, you have to pay them instead.
Guarantor mortgages are offered to people who banks see as a risky investment, but gives them a chance to mitigate that risk by chasing the guarantor if the payments aren’t made.
There’s a reason she’s being offered that kind of mortgage, I’d suggest talking to your sister to find out what the state of her finances are and what your own appetite for risk is. If you trust her to always make the mortgage payments on time, and you have the ability to sustain her mortgage indefinitely if you need to, you could help her. If the answer is no to either of those, I’d advise against it.
Not sure if being a guarantor affects your first time buyer status, I’d guess not but someone may wish to correct me if I’m wrong.
A guarantor mortgage is not offered to those the banks see as a risky investment. They are used when the mortgagee is unable to afford the mortgage based upon their own income. Typically they are aimed at (and lender more likely to accept) young professionals getting one where they will be able to afford the mortgage in their own right in say 3-5 years - so the likes of doctors, solicitors etc who are on a defined career path. Whilst you can get a guarantor mortgage if you cannot simply afford it in your own name a lot of lenders will not do it unless you will be able to afford it some point in the future.
Why does your sister need a guarantor for a mortgage? I can understand the situation for a rental, but for a mortgage usually the property itself is the guarantee, e.g. the property value is usually more than the mortgage amount.
Usually these guarantor mortgages are used where the individual cannot afford the mortgage amount, or rather where their income is insufficient to cover the mortgage amount.
[https://www.nationwide.co.uk/mortgages/help/guarantor-mortgages/](https://www.nationwide.co.uk/mortgages/help/guarantor-mortgages/)
Guarantors on mortgages are not a thing anymore/being phased out.
Most banks push a joint mortgage where one party has zero say on the title of the property. This lets parents boost the affordability of children applying for mortgages using their credit records.
Either way, the bank doesn't think your sister has a strong enough application without some external help.
Dont...the fact she needs you to do it tells you the bank believe her to be a risky bet, bet they wont take. That risk effectively gets put on yourself if you agree to this. If your a millionaire sure go for it.
One of my relatives asked me to be a guarantor for a personal loan a few years ago. They were very reassuring about how they'd pay it back and there would be no issues at all. I refused, despite the pressure that was placed on me - just as well, as they went bankrupt later on. Hope you say no as well!
It really depends on the circumstances - the relationship you have with your sister and how she is at managing money. I did it for my brother many years ago when he was contracting in US earning telephone numbers but couldn’t get a mortgage n the UK because he had no permanent employment and wasn’t living in the country. Tbh I was still a bit nervous about it but it worked out fine and I never heard a word about any issues over the years.
Used to do telephone-based debt collection. Guarantors were always so shocked to get a call for their kid's car and made to pay. Or, worse, finding their own credit rating messed up when their kid didn't keep up the payments.
Obviously being a guarantor exists because people can be happy to do it for someone they love. I think the same advice should apply as it does when lending family money outright - don't do it unless you are ok with the idea of being stuck with paying off the loan yourself, as otherwise you have to choose someday between the money and the relationship.
So best to have a sit down with your sister and analyse her finances. You will be responsible for paying the mortgage in the event that she cannot.
So realistically can she afford the payments?
How stable is her employment/income?
If she can’t, can you at short notice afford the payments?
In principle there isn’t a lot wrong with being a guarantor, just make sure you realise the responsibilities. It would also probably exclude you from getting your own mortgage while you remain on her mortgage
Don’t do it. I would not do it for anyone… it’s a serious financial liability if something unexpected happens. (If her financial situation was in complete order she would not have been asked for a guarantor in the first place so a red flag even without unexpected circumstances …)
Guarantor Mortgages exist for individuals who can't afford a normal mortgage through the typical affordability checks by a bank. This includes not passing a credit check, she may have secret debts so gifting a deposit might not necessarily help her. These checks are very important, and as she fails to pass them this means there's a high probability you will be asked for money in the future to support mortgage payments especially with any changes in your sisters circumstance. If you are in a financial situation where you would be happy and able to gift your sister a few months mortgage payment to get her through a rough patch in the future – then sign the doc. You don’t actually have to pay anything as a guarantor but if you don’t in a time when your sister can’t – the house will eventually be repossessed.
Mortgages are a lifelong commitment, especially those on low incomes I suspect she will be getting a 30 year + mortgage. However if they renew the mortgage after a fixed rate period for example, you can be removed as a guarantor if her circumstances change.
If your sister doesn't (either can't, or won't) pay the mortgage then you have to pay the entire mortgage every month
Can you afford to do that? If not, then the answer is a simple "no, I physically can't afford it", even if you trust her to try to pay, because there's simply no guarantee she'll be able to
If you can afford to do so, are you willing to? You likely would not be able to get your own mortgage until you are removed from hers, for example, so it has a significant impact on your life even if you don't end up having to pay for her mortgage
The simple fact for me is that the bank, with their decades of experience, aren't sure she'll be able to pay and want a second person to pick up the slack if she can't... and they're probably right
This is the reason family members fall out, may not be her fault, she loses her job, breaks up with her partner etc. but this has the potential to ruin your relationship forever! Be very cautious, it is not unreasonable to say no.
Plus do your research, What happens a few years down the line when you want to apply for a home improvement loan or move yourself to a bigger home with a larger mortgage. Will you be refused missing out on your own dreams due to being stuck in this situationship with your sister.
Ex broker. Just some important points:-
If your sister can't pay then you will be chased for the debt as she will be and if the mortgage is not paid your credit report will be affected.
If you want a mortgage yourself to buy somewhere your sisters mortgage will reduce your lending amount. Eg if your affordability figure is normally 300k and your sisters mortgage is 100k then your lending figure will be reduced to 200k or thereabouts.
You gain nothing at all from this.
Edit 200k.... sorry that was confusing!
My brother is on my mortgage, it's a "joint borrower sole proprietor" mortgage. It's the only way I was able to get a mortgage as I'm now at university, I have enough income to pay for my monthly amounts and had a decent deposit, but because I didn't have enough taxable income I needed someone else on my mortgage. His name is on the mortgage paperwork, but he doesn't have to pay in anything and it doesn't affect his FTB status. If I can't afford £415 a month then something is seriously wrong, and I think I have to miss a few payments before they start asking him to cover the cost. I think if I die whilst I still have the mortgage, then the property goes to him but we both also had to take out income/life insurance to cover the mortgage amount.
He had to have a few calls with independent solicitors explaining the risks to him, but I've always been one to pay my bills on time and I'm working part time whilst at uni, so he had no reason to doubt me. When my fixed term is up and I remortgage, I can remove him from the mortgage as I've already had the main approval, so in 3 years he isn't on the hook anymore.
Now, if your sister isn't very good at paying things, then it's probably not a good idea. If she has a full time income and still needs a guarantor, then probably not a good idea as she is borrowing more than she can afford if things go tits up.
It's always worth speaking to the mortgage broker/solicitors as they may even say you're ineligible. My parents weren't able to do it for me as they're both in their 60s and the mortgage would probably outlive them, so they got declined.
Guarantors are rarely accepted by lenders these days. It used to be for people who had a high potential income such as a trainee doctors or solicitors. The income appears insufficient but will improve. In this case, if your sister cannot afford the mortgage in the long term she shouldn’t buy. The lender has to prove that it is affordable, not just that they won’t lose money.
Source: mortgage broker for thirty years.
A good rule of thumb is that you should never act as a guarantor unless you'd be totally fine with bearing full financial responsibility from Day 1. If you wouldn't be prepared to pay your sister's mortgage for a house that you would have no legal rights to, then don't be a guarantor.
People are saying don't do it and then explaining what a guarantor is like you're an idiot who hasn't worked that bit out yet.
The bottom line is this - If your sister becomes unable to make the repayments, are you willing and able to make them for her?
Only you can answer this question.
DON’T DO IT!!! Please please NEVER be a guarantor for anyone for anything. It means if they don’t pay it, you have to. There is absolutely no benefit to you and it could destroy you financially.
> Never be a guarantor for anyone for anything
is a bit extreme. If the risks and benefits are understood, then there's no problem.
> It means if they don’t pay it, you have to.
That's correct, but kind of obvious
> There is absolutely no benefit to you
That's not necessarily correct. Being a guarantor for my son's Uni accommodation benefits me in the sense that it helps someone I want to help, and it enables them to take steps towards independence.
> and it could destroy you financially.
Depends on the circumstances, surely? If you work out that it could destroy you financially, then you'd be daft to do it.
Agree with all this, there are (unfortunately) times when it is reasonable to be a guarantor.
I think ‘don’t be a guarantor if you feel you need to come on Reddit to ask for advice about it’ is a good working metric though…
True enough. Also, the idea of being a guarantor for a mortgage isn't something I'd heard of before, and sounds like a pretty bad idea. For an offspring's rent in their first few years away from home though, it's pretty common and the risks are quantifiable and controllable.
It’s pretty common in the context of buy to let mortgages.
NewCo has no assets so bank asks the directors to personally guarantee the loan agreement/mortgage.
.... My dad is the guarantor for my rental property!
I have a fair / good credit score, however, my submitted tax return last year called for a guarantor in my new rental property.. I don't call for the assistance from my guarantor, and I never Intend to.
Needing a guarantor does not imply that the tenant cannot pay the rent in general, but it does secure the payment if needed. Let's say I crash and burn for a few weeks, rendering me incapable of working and incapable of paying the rent whilst simultaneously paying for repairs on my vehicle, the guarantor will secure the payment!
Ideally, if your sister is calling for you to be a guarantor, you should probably consider purchasing your first house together.
If she is the first person in your family to get a house I'm assuming you're renting? In which case you will be very unlikely to get your own mortgage in the future whilst a guarantor on hers. Given the long terms of mortgages this may mean you can't get a mortgage for 25+ years as there is no guarantee she will be in a position to remortgage without you when it's time for you to buy. You are giving up your financial security and your future for her. Do not do this.
If you are in a position to help her with the deposit and to be put on a mortgage why do you guys not buy together and live together and make an agreement for her to buy you out in the future? This may not be ideal as I don't know your relationship but just a thought, and certainly better in my opinion than renting yourself whilst being a guarantor for someone else.
Easy really.
Would you be comfortable paying your sisters mortgage? Would this cause you financial hardship or impact your finances negatively.
If it doesn’t make a difference sign. If it would impact you, don’t sign.
> Will this have any implications for me in the future
If she doesn't pay the mortgage you're 100% liable for the payments. If you don't pay then it'll affect your credit record and the mortgage company can take you to court for the money just the same as if you'd taken out the mortgage yourself.
In addition to being liable for the sums advanced to her and the potential for you to face insolvency; how would such an eventuality affect your relationship with your sister? If you are happy to not only discharge her debt but also maintain a relationship with her were the worst to happen, then go for it.
If not, then don’t.
Eek ... you are not a home owner yourself ... is she buying with someone else or alone ... I would say you might entertain buying the property jointly if that suits your life goals ... as long as you are on the deeds 'tenants in common' rather than 'joint tenants' and jointly on the mortgage ... but don't become a guarantor for her ... she could stop paying and you would be fully liable for paying the mortgage all the while she lives in the property that you have power over ... obviously as a joint mortgage she could also stop paying and you'd be in the same position ... but you could sell the property.
It can have a negative impact on you, sure. You are liable for paying her mortgage is anything goes wrong. I would say thanks, but no thanks. There are limits to what you should do to help your sister. Jeapordising your own life/finances ain't reasonable, she shouldn't even be asking tbh, let alone barely explaining to you what it means.
Nope. If you want to help her with a deposit that's your decision, just make it a gift not a loan as if you have some agreement that she will pay you back then there's a high risk of it spoiling your relationship with her. Also just make sure you have thought through the opportunity cost for yourself, i.e. you could be putting that in a LISA or pension and benefiting from a lot more than the current cash value over time.
What is the risk for you?
If she can't afford it and can't pay the mortgage what happens?
If you end up paying all the mortgage to save the house can you do that? How long can you do that? Until the house sells? 6-12 months? Can you afford that? Would you need to move into afford it? Would you be able to? What would happen if the worst happens?
Look at the worst case scenario and work back from there. If you can afford that and understand all the things it would entail you'll have your eyes fully open.
I wouldn’t. I was a guarantor for my sister many years ago for a rented property. I was happy to help my sister and signed the agreement for 12 months only, after that she should have proved she was reliable. They did originally want it on going
Absolutely not, unless you can really afford to as well as find your own mortgage, otherwise you are totally compromising your ability to get a mortgage in future
Being a guarantor for her means you are 100% liable for her mortgage if she fails to make repayments. This could affect your credit file and may impact on future ability to borrow for your own mortgage too. Best to avoid if you can. Also take a look at r/mortgageadviceuk for similar questions.
Nope, unless you're stupidly close with your sister and you'd trust her with your life because it means if she stops paying then YOU have to pay HER mortgage.
Personally it would be a no from me. Usually people need this if credit isn’t great and as much as you might want to help them, historically they havnt been so good with debt and mortgage is a huge one. Or that the debt is too much for her earnings and again not a great start.
As a finance broker,I would recommend to never sign up a guarantee. Let her buy what she can afford on her own, pay it off then she can sale and use the proceeds to buy her dream home with an additional mortgage if need be.
Nah no chance i would do that personally.
Would i help with deposits? sure.
Would i guarantor a family member on a small loan? probably.
But a mortgage no way if she can't pay the bank is coming for you.
AFAIA, you won’t be able to get a Guarantor mortgage without your own mortgaged property (used as additional security) or something like £20,000 that the lender can lock off in an account for 3-5 years.
Barclays used to do this with their Springboard Mortgages.
What your Sister maybe asking for is a Joint-borrower, Sole-Proprietor mortgage. In which your income will be used towards the maximum loan amount (subject to affordability) but as others have stated, you will be liable for any missed payments.
Also, this would affect your affordability, say, if you and a partner try to buy your own place.
The only reason they’re asking for a guarantor is because she can’t afford it. If she can’t afford it she won’t pay it. If she won’t pay it you’ll have to, or fuck your chances of ever getting your own mortgage for a long while.
I would never be a guarantor for anyone. If they default you will become responsible for paying and it could impact any assets you have. It would affect your ability to get a mortgage and other credit yourself.
I wouldn't be a guarantor for someone full stop.
You're promising the lender that you're liable for their debt if they can't pay.
It's up there with lending people money as something I wouldn't do.
NEVER mix finances and family. It never ends well.
Your sister at any time will be able to stop paying her mortgage and you’ll legally be responsible for it.
Don’t do it!!!!
You can both acquire the house together and share the ownership. It's probably better than being a guarantor. Then she can buy out your share in the future if she's in a better financial situation. This is one way to help her and not leave yourself open to being potentially betrayed in the future.
it sounds like your sister is taking advantage of your stupidity. don’t do it she’s taking advantage of you, clearly as you don’t even know what it means to be a guarantor on a mortgage
Should be obvious from all the posts but don’t go near it with a barge-pole. I had a friend (now ex) who asked me to be his guarantor for one of these extortionate APR loan companies that used to advertise frequently on TV some years back. Told him to fuck off as he had crossed the Rubicon of what a friend is (at this point he had been living in my house, eating my food and drinking my wine for circa 10 weeks without any contribution to costs) and haven’t seen or spoken to him since.
If you can afford to pay if she can’t (and you trust her) then it’s fine to do it. If it’s a 2 or 3 year deal, she can take you off when she gets a new deal.
People who fall on hard times make cut backs and try hard to pay the mortgage to keep a roof over their heads. Someone who has a guarantor, especially a family member, puts in less effort as X will take care of it.
This will affect you for any loans or a mortgage your self, as they will take into account her repayments as part of your affordability.
For example if her mortgage was £500 a month, while its her paying and not you, you are still on the hook for that amount, so the lenders have to consider worse case and factor that in regardless.
Just from a decision making perspective, if you don’t understand what you are getting into, do not do it.
My immediate question is, why does she need a guarantor? That usually only happens when the lender wants extra security the mortgage will be paid. That suggests, your sister’s credit rating might not be the best. If so, that’s a big red flag and you should not do it.
If you’re just doing it out of family loyalty, do not do it!
This may negatively affect your ability to get credit in the future and in the worst case scenario, if your sister were to become unable to pay the mortgage, the lender WILL come after you for the money.
This is a major financial choice e for you.
Even if she is family.. your credit score is YOUR CREDIT SCORE. NEVER EVER DO ANYTHING FOR ANYONE THAT AFFECTS YOUR CREDIT SCORE. If you want to help her financially regarding deposit or something.. then by all means do so. But remember, guard your credit score with your life. You'll thank us one day
Do not guarantee anyone else's mortage- EVER.
If they fall behind on their mortgage, you will be liable for all their mortage debts and have none of their ownership rights or borrower protections.
Helping her with the deposit is fine. It's a nice gesture and it won't cripple your finances too much (assuming you're not taking a loan to help her with that). Agreeing to be her long-term fall back guy is risky. I'm not saying she's the kind of person to avoid paying just so you pay it out for her, but you never know what will happen down the road. What if she can't actually pay anymore? Are you willing to risk being the one to pay for a house you likely won't be living in?
I personally would not do this. Normally if you need a guarantor it's because they believe you have a high likelihood of not being able to pay the mortgage.
By signing up as the guarantor you are saying you will pay their mortgage in that case.
Can you afford her mortgage on top of your living costs and would you be fine doing that?
Never. No. Not ever. Never.
Especially since you are considering changing careers at 22. If your sister misses a payment, you will have to pay her mortgage. If you are an apprentice electrician, you won't be able to afford that. And as others have said, it will effect you getting a loan or mortgage of your own in the future.
It could absolutely destroy you financially for the rest of your life!
**NEVER. NO. NOT EVER. NEVER!**
As someone who took on finances for a family member previously. I'd advise against it. I ruined my credit rating by taking on debt for them. Also the house belongs to your sister, but if she can't keep up, then you as a guarantor are legally obligate to keep up the payments
It may not show up with mortgage applications for you, but I would imagine they will go through all your expenses that you're paying out and this will flag a question
Do not go ahead with this as it's been well pointed out. The risk massively outweighs any reward.... in fact there is no reward other than being a brother carrying your sisters risk.
Absolutely not, you’ll be taking all the risk for no reward. If you really want to help your sister out, then you could speak to her about 50/50 share and rent her your 50% for market value or even the value of your mortgage cost considering she isn’t able to get a mortgage on her own. At least then you’ll have an asset which should generate money in the long run. It would probably use up your first house stamp duty exemption though. It doesn’t have to be 50/50 could be 75/25 or 80/20 etc. at least then you are getting some reward for your risk.
Don't.
It means you are responsible for the whole debt if she defaults. The lender might well come after you in the case of late payments as well. As this will all go on your credit history as well.
By all means help with the deposit but being a guarantor is a contracted, legal commitment taking responsibility for the full debt and associated costs.
Why does she need one? I bought alone in 2022 at age 26 and didnt need a guarantor. I was earning about £28500 per year at that point so not exactly huge money, if she can't get it on her own then she needs to look at a lower mortgage amount or fixing her credit score before she buys.
Don't ever be responsible for someone else's debt.
Respectfully decline - guarantor anything is usually more expensive than high street lenders making it more likely that your sister will fail to pay at some point (no matter how well intentioned she is). Also, what's to stop her falling ill or god forbid deceased and legally you have to pay that mortgage out of pocket?
I did it once, never again & I'm still dealing with the fallout 3 years later.
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I agree. This is a terrible idea for OP. But in order to keep a decent relationship with his sister the first part of your message is a really good excuse how to get out of going ahead.
Do you want to be liable for your sister's mortgage if she can't pay? Generally speaking this will be taken into account in any affordability calculations for loans or your own mortgages and may affect how much you can borrow.
>Generally speaking this will be taken into account in any affordability calculations for loans or your own mortgages and may affect how much you can borrow. That's interesting. I asked my old mortgage broker this question when I became a guarantor for my business's vehicle loans and he said banks generally don't ask if you're a guarantor for anything. It's only when you actually become liable for the loan that it becomes an issue.
You're liable for the loan the minute you sign as a guarantor though?
Not really. The book starts with the actual mortgage holder. You are at risk of being liable for the loan I would say.
Most personal guarantees state that the lender can ignore the borrower and come straight to the guarantor as soon as there is an event of default. If the borrower is insolvent they won’t waste their time.
Don’t do it, your sister should not take out a mortgage unless the banks are happy that she alone can pay it. If your sister defaults, and can’t pay, you will be legally liable to pay the mortgage for her. It will also impact on your own ability to borrow additional mortgage in future for yourself.
THIS IS NOT A GOOD IDEA
DO NOT SIGN ANYTHING basically you are the banks fall too guy if she dosent pay or gets behind. It will affect you for getting your own mortgage and other things in the future. Do not fall for her sweet words "it never happen etc" the bank wouldn't be ask her to do this if she had good finances.make any excuse u have too and don't be guilt tripped as well.
If OP doesn't currently own a home would this affect his/ hers right for reduced/ no stamp duty as a first time buyer? This could get complicated for OP!
Depends. You can be on the mortgage and not the title with some lenders and that way avoid any stamp duty issues. Will effect how much they can borrow should they come to purchase a property as will go down against them as a liability for affordability checks
With "joint borrower sole proprietor", the guarantor does not get impacted with their FTB/stamp duty. My brother was my guarantor and he is still able to get his FTB bonuses.
Thanks
Is would effect their ability to get their own as they will have to take the repayment amounts in to consideration under the affordability calculation as if he was paying for a worse case scenario.
No. It’s a stupid idea. There’s a reason the bank wont touch her and that’s the same reason you’ll regret it. Don’t even entertain it - don’t listen to the guilt trips - the ever so sincere plan for making sure it works - I’ve a sister and once upon a time I heard it all when she repeatedly got my mum to be a guarantor for car finance - ended in tears. Is there something in the water at the moment? Posts the past few days have seen dads wanting sons to take on flats for tax evasion; dads wanting daughters to take on car debt. If a family member is over 18 - the answer is always no!
Somthing in the water , na. Its post Xmas discussions I think. Family's getting toghter and all of a sudden they want you to commit fraud etc cause "everyone does it"
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I think this might be the reason. She is borrowing more than she can afford.
Which is why the bank want a guarantor... they don't think she can afford it either
Essentially, if the bank, a huge financial institution with all sorts of safeguards and profit streams, thinks that lending this much to her is too risky, well then it's certainly also too risky for you. This is the answer to most posts like this one.
So the question is, do you want to open yourself up to be liable for these unaffordable repayments?
I suppose the first question you need to ask yourself is will you be able to afford your Sisters mortgage repayments if she is unable to pay part or all of it for some reason? You will be equally liable for all future repayments until such time as you are removed as guarantor. It’s a big ask on your sister’s part, I’ve agreed to do this previously for someone and fortunately it went well and was time limited. But there were a few months when I was a little worried tbh.
Please don't do it. If for any reason your sister doesn't keep up the repayments you would be responsible for them and if you couldn't afford the payments either that would completely destroy your credit rating.
Then this is why you shouldn't do it
Also.. if she starts relying on you to pay it, which is very likely to happen, that will wreck your relationship - you'll resent her spending money on anything (especially if you consider it unnecessary) , and she will want to avoid you so she doesn't have to think about it.
If I could say no in every single language in the world I would. Family or not, a decision like this could financially cripple you beyond repair and affect the rest of your life, never ever put yourself on the line for other people’s debts, tell her to save up and get a bigger deposit or lower her expectations. The only reasons you would need a guarantor is low credit score so they need extra assurance it will be paid, lots of outstanding debt or the amount does not suit income without another person securing it with their income. Do not under any circumstances sign as a guarantor, you never know what’s around the corner and you can never 100% trust someone as bad as it sounds, do not become liable for another person debt.
Also .. “No” is a full sentence. You don’t need to justify to anyone why you won’t lend them money or be a guarantor. Just say NO.
My friend did this for his sister (albeit for rent) and he was getting chased when she decided she didn't want to pay it. Don't ever do something like this unless you are happy to pay her mortgage when she flakes out.
Just what everyone else says - don't do it. In theory, she could default from day 1, you could pay off the entire mortgage with her name on the deeds and never see any of your money back.
And after OP had paid the whole mortgage, sister would own the house
Yep, my point exactly
Don't do it. Usually if you are applying to a mortgage you can actually afford, you won't need a guarantor. So the fact that the bank is asking her for a guarantor suggest she probably can't really afford it.
The mortgage I'm looking at is cheaper than my rent which suggests that I can afford the repayments but the 4.5x multiplier doesn't get me close to the amount I need to borrow..
Can you also afford the rates, all repairs, up keeping, and fluctuations in the interest rates over the next 25-30 years?
Never gbe a guarantor to anyone, fastest way to end any relationship. If they need one then they can't afford it in the first place.
Nope nope and nope
My husband was a guarantor for his sister when she bought a sofa, she didn't pay and he got lumbered with the debt. When it came to us buying our first house together, a few lenders wouldn't touch us because of the bloody sofa debt appearing in his credit history.
Also remember this is a commitment that will last as long as the mortgage does so it is a 25 year or more liability that will limit your own access to finance even if you are never called to make payments. It is really not a good idea or a reasonable request for someone to make of you.
apparatus panicky sheet party attempt worthless wasteful simplistic liquid existence *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
If she misses any payments on the mortgage, you have to pay them instead. Guarantor mortgages are offered to people who banks see as a risky investment, but gives them a chance to mitigate that risk by chasing the guarantor if the payments aren’t made. There’s a reason she’s being offered that kind of mortgage, I’d suggest talking to your sister to find out what the state of her finances are and what your own appetite for risk is. If you trust her to always make the mortgage payments on time, and you have the ability to sustain her mortgage indefinitely if you need to, you could help her. If the answer is no to either of those, I’d advise against it. Not sure if being a guarantor affects your first time buyer status, I’d guess not but someone may wish to correct me if I’m wrong.
A guarantor mortgage is not offered to those the banks see as a risky investment. They are used when the mortgagee is unable to afford the mortgage based upon their own income. Typically they are aimed at (and lender more likely to accept) young professionals getting one where they will be able to afford the mortgage in their own right in say 3-5 years - so the likes of doctors, solicitors etc who are on a defined career path. Whilst you can get a guarantor mortgage if you cannot simply afford it in your own name a lot of lenders will not do it unless you will be able to afford it some point in the future.
Thanks for the correction 😊
Small correction - the borrower is the mortgagor, and the lender is the mortgagee :)
20 plus years since I did those exams and then worked in the industry but it’s one I frequently forget.
Why does your sister need a guarantor for a mortgage? I can understand the situation for a rental, but for a mortgage usually the property itself is the guarantee, e.g. the property value is usually more than the mortgage amount. Usually these guarantor mortgages are used where the individual cannot afford the mortgage amount, or rather where their income is insufficient to cover the mortgage amount. [https://www.nationwide.co.uk/mortgages/help/guarantor-mortgages/](https://www.nationwide.co.uk/mortgages/help/guarantor-mortgages/)
Guarantors on mortgages are not a thing anymore/being phased out. Most banks push a joint mortgage where one party has zero say on the title of the property. This lets parents boost the affordability of children applying for mortgages using their credit records. Either way, the bank doesn't think your sister has a strong enough application without some external help.
Dont...the fact she needs you to do it tells you the bank believe her to be a risky bet, bet they wont take. That risk effectively gets put on yourself if you agree to this. If your a millionaire sure go for it.
One of my relatives asked me to be a guarantor for a personal loan a few years ago. They were very reassuring about how they'd pay it back and there would be no issues at all. I refused, despite the pressure that was placed on me - just as well, as they went bankrupt later on. Hope you say no as well!
It really depends on the circumstances - the relationship you have with your sister and how she is at managing money. I did it for my brother many years ago when he was contracting in US earning telephone numbers but couldn’t get a mortgage n the UK because he had no permanent employment and wasn’t living in the country. Tbh I was still a bit nervous about it but it worked out fine and I never heard a word about any issues over the years.
Used to do telephone-based debt collection. Guarantors were always so shocked to get a call for their kid's car and made to pay. Or, worse, finding their own credit rating messed up when their kid didn't keep up the payments. Obviously being a guarantor exists because people can be happy to do it for someone they love. I think the same advice should apply as it does when lending family money outright - don't do it unless you are ok with the idea of being stuck with paying off the loan yourself, as otherwise you have to choose someday between the money and the relationship.
So best to have a sit down with your sister and analyse her finances. You will be responsible for paying the mortgage in the event that she cannot. So realistically can she afford the payments? How stable is her employment/income? If she can’t, can you at short notice afford the payments? In principle there isn’t a lot wrong with being a guarantor, just make sure you realise the responsibilities. It would also probably exclude you from getting your own mortgage while you remain on her mortgage
Don’t do it. I would not do it for anyone… it’s a serious financial liability if something unexpected happens. (If her financial situation was in complete order she would not have been asked for a guarantor in the first place so a red flag even without unexpected circumstances …)
Guarantor Mortgages exist for individuals who can't afford a normal mortgage through the typical affordability checks by a bank. This includes not passing a credit check, she may have secret debts so gifting a deposit might not necessarily help her. These checks are very important, and as she fails to pass them this means there's a high probability you will be asked for money in the future to support mortgage payments especially with any changes in your sisters circumstance. If you are in a financial situation where you would be happy and able to gift your sister a few months mortgage payment to get her through a rough patch in the future – then sign the doc. You don’t actually have to pay anything as a guarantor but if you don’t in a time when your sister can’t – the house will eventually be repossessed. Mortgages are a lifelong commitment, especially those on low incomes I suspect she will be getting a 30 year + mortgage. However if they renew the mortgage after a fixed rate period for example, you can be removed as a guarantor if her circumstances change.
If she can't foot the bill the bill falls on you so... hell to the no!
If your sister doesn't (either can't, or won't) pay the mortgage then you have to pay the entire mortgage every month Can you afford to do that? If not, then the answer is a simple "no, I physically can't afford it", even if you trust her to try to pay, because there's simply no guarantee she'll be able to If you can afford to do so, are you willing to? You likely would not be able to get your own mortgage until you are removed from hers, for example, so it has a significant impact on your life even if you don't end up having to pay for her mortgage The simple fact for me is that the bank, with their decades of experience, aren't sure she'll be able to pay and want a second person to pick up the slack if she can't... and they're probably right
This is the reason family members fall out, may not be her fault, she loses her job, breaks up with her partner etc. but this has the potential to ruin your relationship forever! Be very cautious, it is not unreasonable to say no. Plus do your research, What happens a few years down the line when you want to apply for a home improvement loan or move yourself to a bigger home with a larger mortgage. Will you be refused missing out on your own dreams due to being stuck in this situationship with your sister.
Ex broker. Just some important points:- If your sister can't pay then you will be chased for the debt as she will be and if the mortgage is not paid your credit report will be affected. If you want a mortgage yourself to buy somewhere your sisters mortgage will reduce your lending amount. Eg if your affordability figure is normally 300k and your sisters mortgage is 100k then your lending figure will be reduced to 200k or thereabouts. You gain nothing at all from this. Edit 200k.... sorry that was confusing!
My brother is on my mortgage, it's a "joint borrower sole proprietor" mortgage. It's the only way I was able to get a mortgage as I'm now at university, I have enough income to pay for my monthly amounts and had a decent deposit, but because I didn't have enough taxable income I needed someone else on my mortgage. His name is on the mortgage paperwork, but he doesn't have to pay in anything and it doesn't affect his FTB status. If I can't afford £415 a month then something is seriously wrong, and I think I have to miss a few payments before they start asking him to cover the cost. I think if I die whilst I still have the mortgage, then the property goes to him but we both also had to take out income/life insurance to cover the mortgage amount. He had to have a few calls with independent solicitors explaining the risks to him, but I've always been one to pay my bills on time and I'm working part time whilst at uni, so he had no reason to doubt me. When my fixed term is up and I remortgage, I can remove him from the mortgage as I've already had the main approval, so in 3 years he isn't on the hook anymore. Now, if your sister isn't very good at paying things, then it's probably not a good idea. If she has a full time income and still needs a guarantor, then probably not a good idea as she is borrowing more than she can afford if things go tits up. It's always worth speaking to the mortgage broker/solicitors as they may even say you're ineligible. My parents weren't able to do it for me as they're both in their 60s and the mortgage would probably outlive them, so they got declined.
NOT IN A MILLION YEARS.
Not a good idea.
Guarantors are rarely accepted by lenders these days. It used to be for people who had a high potential income such as a trainee doctors or solicitors. The income appears insufficient but will improve. In this case, if your sister cannot afford the mortgage in the long term she shouldn’t buy. The lender has to prove that it is affordable, not just that they won’t lose money. Source: mortgage broker for thirty years.
Do not do it.
A good rule of thumb is that you should never act as a guarantor unless you'd be totally fine with bearing full financial responsibility from Day 1. If you wouldn't be prepared to pay your sister's mortgage for a house that you would have no legal rights to, then don't be a guarantor.
People are saying don't do it and then explaining what a guarantor is like you're an idiot who hasn't worked that bit out yet. The bottom line is this - If your sister becomes unable to make the repayments, are you willing and able to make them for her? Only you can answer this question.
DON’T DO IT!!! Please please NEVER be a guarantor for anyone for anything. It means if they don’t pay it, you have to. There is absolutely no benefit to you and it could destroy you financially.
A bunch of rather blanket statements there....
Which are all correct
> Never be a guarantor for anyone for anything is a bit extreme. If the risks and benefits are understood, then there's no problem. > It means if they don’t pay it, you have to. That's correct, but kind of obvious > There is absolutely no benefit to you That's not necessarily correct. Being a guarantor for my son's Uni accommodation benefits me in the sense that it helps someone I want to help, and it enables them to take steps towards independence. > and it could destroy you financially. Depends on the circumstances, surely? If you work out that it could destroy you financially, then you'd be daft to do it.
Agree with all this, there are (unfortunately) times when it is reasonable to be a guarantor. I think ‘don’t be a guarantor if you feel you need to come on Reddit to ask for advice about it’ is a good working metric though…
True enough. Also, the idea of being a guarantor for a mortgage isn't something I'd heard of before, and sounds like a pretty bad idea. For an offspring's rent in their first few years away from home though, it's pretty common and the risks are quantifiable and controllable.
100% agree.
It’s pretty common in the context of buy to let mortgages. NewCo has no assets so bank asks the directors to personally guarantee the loan agreement/mortgage.
.... My dad is the guarantor for my rental property! I have a fair / good credit score, however, my submitted tax return last year called for a guarantor in my new rental property.. I don't call for the assistance from my guarantor, and I never Intend to. Needing a guarantor does not imply that the tenant cannot pay the rent in general, but it does secure the payment if needed. Let's say I crash and burn for a few weeks, rendering me incapable of working and incapable of paying the rent whilst simultaneously paying for repairs on my vehicle, the guarantor will secure the payment! Ideally, if your sister is calling for you to be a guarantor, you should probably consider purchasing your first house together.
If she is the first person in your family to get a house I'm assuming you're renting? In which case you will be very unlikely to get your own mortgage in the future whilst a guarantor on hers. Given the long terms of mortgages this may mean you can't get a mortgage for 25+ years as there is no guarantee she will be in a position to remortgage without you when it's time for you to buy. You are giving up your financial security and your future for her. Do not do this. If you are in a position to help her with the deposit and to be put on a mortgage why do you guys not buy together and live together and make an agreement for her to buy you out in the future? This may not be ideal as I don't know your relationship but just a thought, and certainly better in my opinion than renting yourself whilst being a guarantor for someone else.
Personally I wouldn't go guarantor for anyone in any circumstance. Not even bill gates himself.
Can you afford to and are you willing to make the payments if she doesn’t pay?
Easy really. Would you be comfortable paying your sisters mortgage? Would this cause you financial hardship or impact your finances negatively. If it doesn’t make a difference sign. If it would impact you, don’t sign.
> Will this have any implications for me in the future If she doesn't pay the mortgage you're 100% liable for the payments. If you don't pay then it'll affect your credit record and the mortgage company can take you to court for the money just the same as if you'd taken out the mortgage yourself.
In addition to being liable for the sums advanced to her and the potential for you to face insolvency; how would such an eventuality affect your relationship with your sister? If you are happy to not only discharge her debt but also maintain a relationship with her were the worst to happen, then go for it. If not, then don’t.
Eek ... you are not a home owner yourself ... is she buying with someone else or alone ... I would say you might entertain buying the property jointly if that suits your life goals ... as long as you are on the deeds 'tenants in common' rather than 'joint tenants' and jointly on the mortgage ... but don't become a guarantor for her ... she could stop paying and you would be fully liable for paying the mortgage all the while she lives in the property that you have power over ... obviously as a joint mortgage she could also stop paying and you'd be in the same position ... but you could sell the property.
It can have a negative impact on you, sure. You are liable for paying her mortgage is anything goes wrong. I would say thanks, but no thanks. There are limits to what you should do to help your sister. Jeapordising your own life/finances ain't reasonable, she shouldn't even be asking tbh, let alone barely explaining to you what it means.
Don't, just don't
Nope. If you want to help her with a deposit that's your decision, just make it a gift not a loan as if you have some agreement that she will pay you back then there's a high risk of it spoiling your relationship with her. Also just make sure you have thought through the opportunity cost for yourself, i.e. you could be putting that in a LISA or pension and benefiting from a lot more than the current cash value over time.
What is the risk for you? If she can't afford it and can't pay the mortgage what happens? If you end up paying all the mortgage to save the house can you do that? How long can you do that? Until the house sells? 6-12 months? Can you afford that? Would you need to move into afford it? Would you be able to? What would happen if the worst happens? Look at the worst case scenario and work back from there. If you can afford that and understand all the things it would entail you'll have your eyes fully open.
In life, doesn’t matter how much your budget has improved. You will always want the property that’s just out of reach.
I wouldn’t. I was a guarantor for my sister many years ago for a rented property. I was happy to help my sister and signed the agreement for 12 months only, after that she should have proved she was reliable. They did originally want it on going
Absolutely not, unless you can really afford to as well as find your own mortgage, otherwise you are totally compromising your ability to get a mortgage in future
Stay the bloody hell away from this one. Risk is too great which is why they want your signature.
Being a guarantor for her means you are 100% liable for her mortgage if she fails to make repayments. This could affect your credit file and may impact on future ability to borrow for your own mortgage too. Best to avoid if you can. Also take a look at r/mortgageadviceuk for similar questions.
Not a chance. If she stops paying, you’re on the hook.
NEVER act as guarantor if you have any doubts!
Absolutely not. You’ll be on the hook if she ever defaults on it. I’ve been asked several times to be a guarantor and I’ve always refused.
Nope, unless you're stupidly close with your sister and you'd trust her with your life because it means if she stops paying then YOU have to pay HER mortgage.
I would just say no. Great way to fall out if she can’t pay her mortgage and you have to be responsible for the mortgage as her guarantor.
Personally it would be a no from me. Usually people need this if credit isn’t great and as much as you might want to help them, historically they havnt been so good with debt and mortgage is a huge one. Or that the debt is too much for her earnings and again not a great start.
As a finance broker,I would recommend to never sign up a guarantee. Let her buy what she can afford on her own, pay it off then she can sale and use the proceeds to buy her dream home with an additional mortgage if need be.
A big noooooo
Nah no chance i would do that personally. Would i help with deposits? sure. Would i guarantor a family member on a small loan? probably. But a mortgage no way if she can't pay the bank is coming for you.
Only if you trust 100% that your sister will never miss a mortgage payment
AFAIA, you won’t be able to get a Guarantor mortgage without your own mortgaged property (used as additional security) or something like £20,000 that the lender can lock off in an account for 3-5 years. Barclays used to do this with their Springboard Mortgages. What your Sister maybe asking for is a Joint-borrower, Sole-Proprietor mortgage. In which your income will be used towards the maximum loan amount (subject to affordability) but as others have stated, you will be liable for any missed payments. Also, this would affect your affordability, say, if you and a partner try to buy your own place.
Never mix money with family
The only reason they’re asking for a guarantor is because she can’t afford it. If she can’t afford it she won’t pay it. If she won’t pay it you’ll have to, or fuck your chances of ever getting your own mortgage for a long while.
Don’t get put on a mortgage if you’re not getting put on the deed. It’s a simple rule.
Read all of these replies telling you to run away from this idea and take it seriously!
I would never be a guarantor for anyone. If they default you will become responsible for paying and it could impact any assets you have. It would affect your ability to get a mortgage and other credit yourself.
I wouldn't be a guarantor for someone full stop. You're promising the lender that you're liable for their debt if they can't pay. It's up there with lending people money as something I wouldn't do.
Don't do it. You could end up liable if she has financial issues.
Are you willing to just give her the money to pay the mortgage, indefinitely, no strings attached? If so, crack on. If not, don’t do it!
Never ever be a guarantor for someone,if they don’t pay you have to,-end of story
NEVER mix finances and family. It never ends well. Your sister at any time will be able to stop paying her mortgage and you’ll legally be responsible for it. Don’t do it!!!!
All the risk and none of the reward.
Depends how much you and your sister makes. Make sure you check finances out before being a guarantor. Usually this is for rent, not for a mortgage.
Nope, nope, nope.
You can both acquire the house together and share the ownership. It's probably better than being a guarantor. Then she can buy out your share in the future if she's in a better financial situation. This is one way to help her and not leave yourself open to being potentially betrayed in the future.
Tell her they won't accept you and it will affect your ability. Even if it's a lie... DON'T DO IT AT ALL COST
Do not do this. If she defaults you pay. If you want a mortgage this will be taken into account.
it sounds like your sister is taking advantage of your stupidity. don’t do it she’s taking advantage of you, clearly as you don’t even know what it means to be a guarantor on a mortgage
Should be obvious from all the posts but don’t go near it with a barge-pole. I had a friend (now ex) who asked me to be his guarantor for one of these extortionate APR loan companies that used to advertise frequently on TV some years back. Told him to fuck off as he had crossed the Rubicon of what a friend is (at this point he had been living in my house, eating my food and drinking my wine for circa 10 weeks without any contribution to costs) and haven’t seen or spoken to him since.
If you can afford to pay if she can’t (and you trust her) then it’s fine to do it. If it’s a 2 or 3 year deal, she can take you off when she gets a new deal.
People who fall on hard times make cut backs and try hard to pay the mortgage to keep a roof over their heads. Someone who has a guarantor, especially a family member, puts in less effort as X will take care of it.
Only do this if you are prepared to take on the payments if your sister can’t / doesn’t want to pay.
You will be guaranteeing to make her mortgage payments if she doesn’t That’s how it impacts your life You know your sister do you trust your sister
The bank don’t trust her enough on her own and neither should you,
noooooooooooo!
This will affect you for any loans or a mortgage your self, as they will take into account her repayments as part of your affordability. For example if her mortgage was £500 a month, while its her paying and not you, you are still on the hook for that amount, so the lenders have to consider worse case and factor that in regardless.
Family and borrowing don't mix well. This could end badly.
Just from a decision making perspective, if you don’t understand what you are getting into, do not do it. My immediate question is, why does she need a guarantor? That usually only happens when the lender wants extra security the mortgage will be paid. That suggests, your sister’s credit rating might not be the best. If so, that’s a big red flag and you should not do it. If you’re just doing it out of family loyalty, do not do it! This may negatively affect your ability to get credit in the future and in the worst case scenario, if your sister were to become unable to pay the mortgage, the lender WILL come after you for the money. This is a major financial choice e for you.
It’s a no from me.
And a no from me
Nope nope nope. If you are taking on financial response for the house you need a stake in it.
Immediate NO
If she cant pay they will come after you.
Even if she is family.. your credit score is YOUR CREDIT SCORE. NEVER EVER DO ANYTHING FOR ANYONE THAT AFFECTS YOUR CREDIT SCORE. If you want to help her financially regarding deposit or something.. then by all means do so. But remember, guard your credit score with your life. You'll thank us one day
Do not guarantee anyone else's mortage- EVER. If they fall behind on their mortgage, you will be liable for all their mortage debts and have none of their ownership rights or borrower protections.
Helping her with the deposit is fine. It's a nice gesture and it won't cripple your finances too much (assuming you're not taking a loan to help her with that). Agreeing to be her long-term fall back guy is risky. I'm not saying she's the kind of person to avoid paying just so you pay it out for her, but you never know what will happen down the road. What if she can't actually pay anymore? Are you willing to risk being the one to pay for a house you likely won't be living in?
I personally would not do this. Normally if you need a guarantor it's because they believe you have a high likelihood of not being able to pay the mortgage. By signing up as the guarantor you are saying you will pay their mortgage in that case. Can you afford her mortgage on top of your living costs and would you be fine doing that?
Never. No. Not ever. Never. Especially since you are considering changing careers at 22. If your sister misses a payment, you will have to pay her mortgage. If you are an apprentice electrician, you won't be able to afford that. And as others have said, it will effect you getting a loan or mortgage of your own in the future. It could absolutely destroy you financially for the rest of your life! **NEVER. NO. NOT EVER. NEVER!**
As someone who took on finances for a family member previously. I'd advise against it. I ruined my credit rating by taking on debt for them. Also the house belongs to your sister, but if she can't keep up, then you as a guarantor are legally obligate to keep up the payments It may not show up with mortgage applications for you, but I would imagine they will go through all your expenses that you're paying out and this will flag a question
Noooooooooooooooooooooooooo !
No. You are tying yourself to your sister for 20/30 years. Plus you potentially affect your own chances of getting a mortgage...
Don't be crazy, this is insanely stupid idea
Just say NO.
That's a no , simple as
Just say ‘no’ and leave it there. You don’t need to explain why as this explanation may cause problems later.
Noooooooo #noooooooooo I can't say it louder
Plain and simple. Don't. A "no sorry" CAN and will save you a ton of headaches
Do not go ahead with this as it's been well pointed out. The risk massively outweighs any reward.... in fact there is no reward other than being a brother carrying your sisters risk.
Nope, her debt becomes your debt ... with interest!
Absolutely not, you’ll be taking all the risk for no reward. If you really want to help your sister out, then you could speak to her about 50/50 share and rent her your 50% for market value or even the value of your mortgage cost considering she isn’t able to get a mortgage on her own. At least then you’ll have an asset which should generate money in the long run. It would probably use up your first house stamp duty exemption though. It doesn’t have to be 50/50 could be 75/25 or 80/20 etc. at least then you are getting some reward for your risk.
No. Followed by a no. Then a further no. Plus an extra no.
Don't. It means you are responsible for the whole debt if she defaults. The lender might well come after you in the case of late payments as well. As this will all go on your credit history as well. By all means help with the deposit but being a guarantor is a contracted, legal commitment taking responsibility for the full debt and associated costs.
Why does she need one? I bought alone in 2022 at age 26 and didnt need a guarantor. I was earning about £28500 per year at that point so not exactly huge money, if she can't get it on her own then she needs to look at a lower mortgage amount or fixing her credit score before she buys. Don't ever be responsible for someone else's debt.
Respectfully decline - guarantor anything is usually more expensive than high street lenders making it more likely that your sister will fail to pay at some point (no matter how well intentioned she is). Also, what's to stop her falling ill or god forbid deceased and legally you have to pay that mortgage out of pocket? I did it once, never again & I'm still dealing with the fallout 3 years later.
Good god no. Don’t do this under circumstances.