The Sunday Times - A-Z of Money: Buy with help from the bank of mum and dad

Some lenders are happy to accept mortgage applications with a guarantor and they maybe able to increase the amount their children can borrow. Aaron Strutt of Trinity Financial, the broker, said: “To qualify for a guarantor mortgage, the lenders use affordability calculators and parents have to be able to support all their monthly outgoings and the mortgage they are guaranteeing. The lenders tend to prefer guarantors below 65 and in employment, with a clear credit history and generous income.” For example, a son or daughter earning £30,000 would be able to borrow up to £150,000. However, if they applied with a parent earning £60,000 acting as a guarantor, they could borrow up to £300,000, says Trinity Financial, the broker, although other outgoings would reduce the sum that could be borrowed. Click here to view the full story: http://goo.gl/o7ud4s £ September 2, 2013