My husband and I want to buy our first house, we have a couple of personal loans and credit cards we would need to consolidate into the home loan. My parents are willing to sign as guarantor's, but are only able to sign as Income Guarantors…(They have a perfect rental history over the past 30 years.)
We both have stable jobs and can quiet easily afford mortgage repayments, however we have been unable to save a deposit whilst trying to clear these debts...
Is it posible for this to happen???
Thanks
Guarantors and Debt Consolidation
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
- Contact:
Re: Guarantors and Debt Consolidation
Unfortunately if you are looking to borrow 100% or more then you will need a security guarantee. An income guarantee will not work as from a lenders point of view the income isn't the problem, it is the lack of security.
You should talk to your extended family about being a guarantor (must have cash or a property with equity) or try to save 5% of the purchase price once you have repaid your debts.
You should talk to your extended family about being a guarantor (must have cash or a property with equity) or try to save 5% of the purchase price once you have repaid your debts.