for borrowers

The guide for Guarantors

Essential information for guarantors

Being a mortgage guarantor means that you have agreed to support the mortgage application of a person, usually a child or other family member, who would otherwise be unable to get a foothold on the property ladder because of low income.

In this situation your help can make a real difference as, by taking on the risk yourself, you have the potential to enable a first-time buyer to pursue their home owning dreams.

However, guarantors do take on the risk of the mortgage, so it is essential that you are fully informed of all the terms, conditions and possible consequences when helping your family member to achieve home ownership.


Important information

The following information is important if you intend to act as a guarantor for a mortgage for another person. The Cambridge recommends that you take independent legal advice before entering into an agreement to make sure you understand the full implications of your commitment as well as the potential consequences of your decision.

You should not agree to act as a guarantor unless you are able to meet the payments for the borrower’s mortgage after you have satisfied your own budgetary needs. A mortgage is a long-term debt so you must also consider what commitments you might undertake in the future and how they may be affected by the guarantee which you will be giving.


Acting as a guarantor

Becoming a guarantor means you could have a life-changing effect for the person or family you are helping to get a mortgage. However, it is crucial that you understand the full implications of acting in this capacity before you make any lasting commitment:

  • should the borrower whose mortgage payments you are guaranteeing default on all, or part, of his or her payments, you will be required to make the payments to The Cambridge. Failure to make payments when required could result in legal action being taken against you

  • the guarantee which you give will be for the duration of the mortgage. The Cambridge may, however, be prepared to release you from your guarantee if it is satisfied that the borrower is able to sustain payments without your support

  • the Cambridge will assess your suitability to act as a guarantor by reviewing your financial circumstances. You will be required to give The Cambridge permission to seek any references which it may require and to search the files of any credit reference agency which will keep a record of that search

  • entering an arrangement by which you are committing yourself to repayment of a debt needs your careful consideration



Fees are a necessary part of the mortgage application process. Any valuation, legal or other fees incurred by The Cambridge for the acceptance and assessment of a guarantor will be the responsibility of the principal borrower or the guarantor.


Limit of guarantee

The amount of the guarantee, provided by a guarantor or by collateral security, will be limited to the amount of the advance, any unpaid interest and costs incurred as a result of possession proceedings. An unlimited guarantee will not be taken.


Talk to The Cambridge today on 0345 601 3344 if you are considering becoming a mortgage guarantor.



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