With a guarantor mortgage the potential borrower can ask another person (generally a close family member) to stand as a guarantor for a period of time.

A guarantor will enable the potential borrower to borrow the money, as the lender will base its affordability on the guarantor’s income and status rather than the applicants.

Traditional guarantor mortgages helped those who would usually not have enough income for mortgage payments.

Now with raising a deposit, often the biggest problem for those trying to get a foot on the property ladder is that there are new products that allow a relative to provide a percentage of the deposit in the form of savings.

This guide will outline the key considerations for borrowers contemplating taking on this type of home loan, the different ways these loans work, the pros and cons of this type of deal and alternative mortgages that are currently available.

Supporting material produced by: Jeremy Duncombe, director of Legal and General Mortgage Club; Shaun Church, director at Private Finance; Christine Newell, technical director at Paradigm Mortgage Services; and Dale Jannels, managing director of Atom.