Guarantor Mortgages: Are They Still a Thing in the UK

A guarantor mortgage is a mortgage arrangement in which a third party — the guarantor — agrees to take responsibility for repayments if the borrower fails to meet them. The guarantor does not own the property and their name does not appear on the title deeds. Instead, they provide security to the lender, typically in the form of savings held as collateral or by offering a charge against their own property.

This type of mortgage has historically been used to help buyers who cannot meet standard affordability requirements on their own — typically first-time buyers or those with limited income or deposit. However, the UK mortgage market has shifted significantly in recent years. Traditional guarantor mortgages have become less common, with many lenders moving towards alternative structures. Understanding what remains available, how it works legally, and where the boundaries of liability lie is essential context for anyone seeking clarity on this area.

Traditional guarantor mortgages still exist in the UK but are no longer widely offered. The market has largely moved towards a related but distinct product called a Joint Borrower Sole Proprietor (JBSP) mortgage, where a supporting borrower's income is included in the affordability assessment from the start, rather than as a fallback guarantee.

A small number of lenders historically offered traditional guarantor mortgages, but most large UK lenders have moved away from this structure. Nationwide Building Society previously operated guarantor-style arrangements but now primarily offers alternative affordability structures, including enhanced affordability models and family-assisted mortgages. As a result, fully traditional guarantor mortgages are now relatively rare in the mainstream UK market. Guarantor mortgages are explicitly excluded from the government's 2025 Mortgage Guarantee Scheme. Legal protections under the Consumer Credit Act 1974 govern how guarantees must be documented and how lenders may enforce them where that Act applies.

The Traditional Guarantor Structure

In a traditional guarantor mortgage, the borrower takes out the mortgage in their own name and becomes the sole owner of the property. The guarantor's role is to act as a backstop: they agree, in writing, that if the borrower cannot make repayments, they will. The lender takes this guarantee as additional security when deciding to lend.

The guarantor's liability is contingent — it does not crystallise unless and until the borrower defaults and the lender calls upon the guarantee. Until that point, the guarantor's financial position is affected only in terms of the contingent liability that may appear in their own financial records.

Lenders offering this structure typically require the guarantor to provide security in one of two ways: by holding a defined sum of money in a linked savings account, or by registering a charge against a property the guarantor owns. The Barclays Family Springboard Mortgage is an example of the savings-based model: a supporting person — referred to as a "helper" — deposits an amount equal to 10% of the property purchase price into a designated Helpful Start account. That money is held for a period of five years. Provided the mortgage stays up to date and no more than two payments are missed during those five years (and none in the final twelve months), the savings are returned with interest after the five-year period. If three or more payments are missed, the period may be extended.

The Barclays Family Springboard Mortgage carries a fixed interest rate for five years, after which it tracks the Bank of England base rate. The mortgage term can range from five to thirty-five years. The maximum borrowing available depends on the lender's current product criteria and affordability assessment, and may change over time.

The Move Towards JBSP Mortgages

Joint Borrower Sole Proprietor mortgages operate differently, and understanding the distinction matters. In a JBSP arrangement, multiple people apply for the mortgage together and are jointly liable for repayments from the outset. However, only one person — the main borrower — is registered as the legal owner of the property. The supporting borrower's income is included in the lender's affordability assessment, potentially increasing the amount that can be borrowed, but they hold no ownership stake.

This is a meaningful structural difference from a traditional guarantor mortgage. Under a JBSP arrangement, the supporting person is a co-borrower with immediate and ongoing repayment responsibility, not a fallback guarantor whose liability only arises upon default.

Many UK lenders now offer JBSP mortgages, including Barclays, NatWest, Skipton Building Society, Metro Bank, and Principality Building Society. Some lenders accept up to four applicants and use all four incomes in their affordability calculations. Skipton Building Society, for example, places no restriction on the relationship between the main borrower and supporting borrowers.

In most cases, lenders apply maximum age limits to JBSP applications, typically based on the oldest applicant. Metro Bank considers applicants up to age 80, with the mortgage term based on that borrower's age. Principality Building Society applies a limit of age 70 where employed income is used, or up to 76 where pension income is the basis, though these thresholds may vary depending on circumstances.

Historical Lender Criteria for Guarantor Arrangements

Some lenders historically applied specific criteria to guarantor arrangements, including limits on the guarantor's age, requirements around relationship to the borrower, residency and income conditions, and maximum Loan to Value thresholds. In modern UK lending, criteria of this nature are more commonly associated with Joint Borrower Sole Proprietor (JBSP) mortgages or family-assisted products rather than traditional guarantor mortgages. As lender policies vary widely and change over time, specific product criteria must be verified directly with the lender at the time of application.

Independent Legal Advice Requirement

Before a guarantor mortgage completes, the guarantor is required to obtain independent legal advice. This must be confirmed in writing to the lender by an independent solicitor before the case can complete. The solicitor providing this advice cannot be the same solicitor handling the property transfer, although they may be from the same firm. This requirement exists because releasing a guarantor from liability typically requires either that the borrower can demonstrate the ability to meet repayments independently, or that the mortgage is repaid in full.

The 2025 Mortgage Guarantee Scheme

Guarantor mortgages are explicitly excluded from the HM Treasury 2025 Mortgage Guarantee Scheme. The scheme rules state that "the loan must not be a guarantor mortgage or offset mortgage." The scheme supports mortgage lending at 91–95% LTV. Because guarantor mortgages are outside the scheme's scope, borrowers using a guarantor arrangement cannot access the government-backed guarantee that the scheme provides.

Consumer Credit Act 1974: Key Legal Requirements

Where guarantees relate to regulated credit agreements under the Consumer Credit Act 1974, those agreements must comply with the procedural requirements set out in that legislation. However, most residential first-charge mortgages in the UK are regulated under the Financial Services and Markets Act 2000 and the FCA's Mortgage Conduct of Business (MCOB) rules rather than the Consumer Credit Act. In those cases, the enforceability of guarantees and borrower protections arise primarily through mortgage contract law, MCOB rules, and the terms of the mortgage deed. The CCA provisions below apply where the guarantee relates to a regulated agreement within the scope of that Act.

Under Section 105(1) of the CCA 1974, any security provided in connection with a regulated agreement must be expressed in writing. If security is not in writing or has been improperly executed, it is enforceable against the guarantor only on a court order.

Under Section 105(5), where security is provided before the regulated agreement is made, the creditor must give the guarantor a copy of the executed agreement within seven days of the agreement being made. Where security is provided at the time of, or after, the agreement, a copy must be given at the point security is provided.

Under Sections 107–109, a guarantor can request copies of the credit agreement, the guarantee document, and a statement of account from the creditor. The creditor must respond within 12 working days of receiving a written request accompanied by the prescribed fee of £1. Until the creditor complies, the guarantee is unenforceable.

Under Section 111, when a default notice is served on the borrower, a copy must also be served on the guarantor. Failure to do so means the guarantee can only be enforced by court order.

Under Section 88, a default notice must give the borrower (and by extension the guarantor, who must receive a copy) at least 14 days to remedy the breach before enforcement action can be taken.

FCA Guidance on Enforcement: FG 17/1

The FCA issued Finalised Guidance FG 17/1 in January 2017, which confirmed that the Section 87 default notice requirements under the CCA apply before enforcement action can be taken against a guarantor. This guidance reversed an earlier FCA position from 2015. The guidance also addressed the use of Continuous Payment Authority (CPA) or direct debit to take payment from a guarantor: if the lender pre-notifies the guarantor before taking payment via this route, they must allow at least five working days following that notification. This provides the guarantor with an opportunity to cancel the payment authority if they choose.

"Guarantor mortgage" and "JBSP mortgage" are not the same thing

These two terms are sometimes used interchangeably in consumer-facing materials, but they describe legally distinct arrangements. In a guarantor mortgage, the supporting person's liability is contingent on borrower default. In a JBSP mortgage, the supporting person is jointly and immediately liable for repayments from the outset, but holds no ownership interest. The practical, legal, and financial implications of these two roles differ significantly.

Guarantors do not own the property

This is one of the most commonly misunderstood aspects of guarantor mortgages. The guarantor has no ownership interest in the property. They are not on the title deeds. Their role is limited to providing security and accepting contingent liability for repayments if the borrower cannot meet them.

Guarantor release is not automatic

Being released from a guarantor obligation does not happen automatically after a set period. In most cases, release requires the borrower to demonstrate the ability to sustain mortgage repayments independently, or for the mortgage to be repaid in full. This typically means the lender's agreement is required, and may involve remortgaging. According to published lender guidance, this may happen once the LTV reaches approximately 80% or after an agreed period, though exact conditions vary by lender.

The 2025 Mortgage Guarantee Scheme does not cover guarantor mortgages

Some people assume that any product marketed as a "mortgage" falls within the government's Mortgage Guarantee Scheme when bought at high LTV. This is not the case. Guarantor mortgages are explicitly excluded from the 2025 Mortgage Guarantee Scheme by its rules.

Buy-to-let properties are generally not eligible

Guarantor mortgage arrangements are generally not available for buy-to-let properties. Buy-to-let lending uses different affordability criteria, primarily based on rental income assessment, and guarantor arrangements are typically not offered in that context.

Relationship Requirements Vary by Lender

Some lenders restrict guarantors or JBSP supporting borrowers to close family members, while others take a broader view. Skipton Building Society explicitly states there is no restriction on the relationship between the main borrower and supporting borrowers for its JBSP product. Whether non-family members — such as friends or long-term partners — can act in these roles depends on the lender's own criteria. In most cases, lenders will have specific eligibility requirements that determine who qualifies.

Deposit Source Requirements

In most cases, lenders accept gifted deposits from helpers or family members. However, in some instances, individual lenders may require a proportion of the deposit to come from the applicant's own funds even where a guarantor is involved. This varies by lender and product.

Residence by Non-Proprietor Borrowers Under JBSP

Whether a JBSP supporting borrower is permitted to reside in the property varies by lender. Metro Bank, for example, permits joint borrowers to reside in the property, subject to signing a Declaration of Occupier form. Other lenders may have different or more restrictive policies on this point.

If a Guarantor Dies

In most cases, what happens when a guarantor dies depends on the lender's own policies. Possible responses may include requiring a new guarantor to be found, allowing the guarantor's estate to discharge a portion of the liability, or allowing the borrower to remortgage without a guarantor if their own financial circumstances have sufficiently improved. There is no single universal rule, and lender policies vary.

Guarantor Liability in Insolvency Proceedings

In England and Wales, a guarantor's liability under a mortgage guarantee may be treated as a contingent liability in bankruptcy or Individual Voluntary Arrangement (IVA) proceedings, even if the liability has not yet crystallised through default and demand. For Debt Relief Orders, the position differs: the guarantee may only qualify as a debt within the order once the liability has crystallised following default and a demand being made. These rules are complex and depend on the specific proceedings involved. These outcomes depend on the specific insolvency proceedings and legal advice obtained in the case.

The guarantor mortgage market in the UK is narrower than it once was. Traditional guarantor products — where the guarantor's liability only arises upon borrower default — are offered by fewer lenders than in previous years. Much of the functionality that guarantor mortgages once provided has migrated into JBSP structures, which are now offered by a wider range of lenders and allow supporting borrowers' incomes to be counted in affordability assessments without giving them a property ownership stake.

Where traditional guarantor products remain available, they come with detailed eligibility conditions that apply to both the borrower and the guarantor individually. Age, residency, relationship to the borrower, and the mortgage's LTV all feed into whether a particular arrangement is possible under a given lender's rules.

The legal framework governing guarantees under the CCA 1974 provides a set of rights and procedural safeguards for guarantors. Guarantors are entitled to receive copies of relevant documentation, to receive default notices before enforcement, and to have at least 14 days to remedy a breach. These protections exist regardless of what the guarantee document itself says, because they are enshrined in primary legislation.

The requirement for independent legal advice before completion is designed to ensure guarantors understand the commitment they are making before it becomes binding. A guarantor is taking on a significant contingent financial obligation, and lenders require evidence that the guarantor has received professional legal guidance.

• Traditional guarantor mortgages remain available in the UK but are less common than they once were. Many lenders have moved toward JBSP structures in which supporting borrowers are co-liable for repayments from the outset rather than acting as fallback guarantors.
• Where traditional guarantor products are offered, lenders apply specific eligibility conditions to both the borrower and the guarantor, including age limits, residency requirements, relationship criteria, and maximum LTV restrictions. Nationwide's maximum LTV for guarantor mortgages is 85%.
• Guarantor mortgages are explicitly excluded from the 2025 Mortgage Guarantee Scheme under its published rules.
• Barclays' Family Springboard Mortgage operates on a savings-security model: the helper deposits 10% of the purchase price into a designated account, which is held for five years and returned with interest if conditions are met.
• The Consumer Credit Act 1974 provides guarantors with formal legal protections: the guarantee must be in writing, default notices must be copied to the guarantor, the guarantor has the right to request documentation within set timeframes, and enforcement requires at least 14 days' notice of an opportunity to remedy breach.
• FCA Finalised Guidance FG 17/1 confirms that Section 87 default notice requirements apply before any enforcement action can be taken against a guarantor, and that a minimum of five working days' notice is required before using CPA or direct debit to take payment from a guarantor.
• Guarantor release is not automatic and requires the lender's agreement, generally following evidence that the borrower can sustain repayments independently or upon full repayment of the mortgage.

This article is for informational purposes only. It explains how guarantor mortgage arrangements work in the UK as of the date of publication. It does not constitute financial, legal, or mortgage advice. Individuals seeking help with guarantor arrangements should consider consulting a qualified mortgage broker or solicitor.

Related: Guarantor Loans: Risks | Self-Employed Mortgages: What Lenders Want to See | Joint Debt Rules: Who Is Liable? | Mortgage Arrears: What Happens Before and After a Missed Payment.