A guarantor mortgage is for customers who don’t have enough income to qualify for a mortgage on their own. The guarantor provides a guarantee that they will repay the amount borrowed if the borrower does not repay their agreed payments.
Mortgages that apply
Guarantors may be used for:
- New mortgages for house purchases.
- Remortgages, provided past payment history shows a perfect payment record.
- Change of borrower.
To apply with a guarantor
The guarantor must:
- be a close family member or have a close long-term relationship with the borrower
- live in the UK.
- have their income paid in sterling into a UK bank account.
You must be applying for a mortgage with a Loan to Value (LTV) of up to 85% of your property’s value.
Providing a guarantor does not necessarily make a mortgage application acceptable if it has been declined for other reasons.
It's not currently possible to apply for a mortgage with a guarantor online.
Guarantors must get independent legal advice. This must be confirmed in writing to Nationwide by an independent solicitor before the case completes.
This is because they can only be released from their responsibility when the borrower is in a position to cover the entire mortgage or if the loan is repaid in full.
If there are any important changes in circumstance for either the borrower or the guarantor, such as unemployment, you must notify Nationwide right away as this will change the basis for the loan.