The range includes a number of unique limited liability mortgage products, for those wanting to guarantee a smaller proportion of a loan and full liability products, for those able to provide support for the entire mortgage.
The applicant must be able to afford at least 70% of the loan amount when applying. In addition to their existing commitments, the guarantor must be able to afford the shortfall (a maximum of 30% of the debt) plus a further 10% tolerance.
With a requirement for a low deposit of 15% (85% maximum LTV), the following range is also suitable for graduates who are likely to see their income increase over time, allowing the guarantor to be removed from the mortgage at a later date.
The guarantor must be able to afford the entire mortgage plus their existing commitments (i.e. their own mortgage).
This range offers choice in terms of its alternative percentage fee structure, offering lower headline rates which can help cash-flow. There are no occupational restrictions either which is ideal for parents wishing to help their student children purchase a home.
Tracie Pearce, head of products, The Mortgage Works said: "The new range of guarantor mortgages offer choice and flexibility for guarantors and first time buyers. Many lenders have guarantor propositions but very few offer products specifically designed to cater for this sector. The Mortgage Works is delighted to support the housing market, helping first time buyers get a foot on the housing ladder."
