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headmelter

Bank Of Mum And Dad

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http://www.thisismoney.co.uk/mortgages/art...e_id=8&ct=5

"The guarantor

For parents who would like to lend a hand but feel uncomfortable about handing over a sum of cash, acting as a guarantor can be the answer. Guarantors extend a buyer's borrowing power by promising to be responsible for the mortgage payments if they are not met.

An example is a first-time buyer wanting to buy a £150,000 home with a £15,000 deposit, and salary of £34,000, but they do not meet a lender's borrowing criteria, even with affordability lending.

They plan to have a friend live with them and pay rent to contribute to the mortgage, but the lender will not take this into account, so a parent acts as guarantor – enabling them to borrow the extra cash

By doing so their finances will be taken into account, but they will not go on the property deeds. If the mortgage payments are not met, the guarantor is responsible for finding the cash to pay them. Mortgage lenders will typically take guarantors on most loans, but they will be financially checked in the same way primary borrowers are and must make sure they can afford the monthly repayments if need be."

Sounds like agood idea, instead of lendining Tarquin £20,000 sign a form to gaurantee payments on a £200,000 mortgage for 25 years.

What a deal. :blink:

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Is this the daily mail suggesting that the average home should be £150k or less?

LOL

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This sort of thing is becoming more common these days. I turned down a poxy studio flat of £350pcm because they insisted that I had to have a home-owner guarantor to cover me. I'm in my mid20's for christ's sakes and don't want a goddamn letter from my parents allowing me to get a place.

I very nearly signed for another place and conceded to having this agreement but it fell through last minute. With no-where to live sometimes you have to do these things but with a recession on the a would feel deeply uncomfortable with this agreement, now I wouldn't do it.

Edited by chefdave

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My mum'll see me right. She's standing by, ready to help me make a practical start on a house.

If I mix all that she left me in with I reckon, about a bucket and a half of really coarse sand, I should get some spiffing mortar.

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Of course ,if like me , you have no parents and had no inheritance because they lived in council accomodation , you are pretty stuffed !

Any Daily Mail suggestions ?

stuffed? not for long.

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For parents who would like to lend a hand but feel uncomfortable about handing over a sum of cash, acting as a guarantor can be the answer. Guarantors extend a buyer's borrowing power by promising to be responsible for the mortgage payments if they are not met.

You make this sound like it's something new.

This has been happening for as long as I can remember, and I'm 47.

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You make this sound like it's something new.

This has been happening for as long as I can remember, and I'm 47.

No I'm not trying to make it ut that this is something new, merely pointing out the VI of the Dal Mail in trying to keep good ship HPI afloat at any cost.

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...the article has no credibility....

this may not be the best time for handing over a substantial chunk of your savings to youngsters keen to climb on to the property ladder. However, there are still ways to help:

........we all know it's a snake not a 'ladder' ......does the journalist not understand the market or is it the case he has never played snakes and ladders...... <_<

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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