Getting a mortgage co-signed is common in the UK, especially when first-time buyers are concerned. To receive a co-signer’s signature on your mortgage, however, you and your prospective co-signers individual circumstances will have to meet certain requirements. Fortunately, we work with a team of expert brokers who often deal with queries about this type of product. Every client who contacts us receives initial free, impartial advice tailored to their personal financial situation. If you need more information on this, then we’ve got just the thing for you. Read on for a brief breakdown of everything you need to know about cosigns for mortgages.
What Does It Mean to Co-Sign a Mortgage?
A co-signer is someone who signs the deeds to a mortgage alongside the primary buyer(s) if they are not qualified for the full mortgage amount on their own, or to strengthen their potential to obtain a mortgage through the strength of their credit history and income. The co-signer on a mortgage is not named on the deed but is still legally responsible for the debt.
Will This Make it Easier to Get a Mortgage Approved?
While it doesn’t necessarily make the process of getting your loan easier, a co-signer with good credit could make your chances of approval stronger. This is because a co-borrower with a good debt-to-income ratio and clean credit history could improve your credit score. On the other hand, even a more distant relative’s bad credit history, or getting a mortgage with a cosigner whose credit history is bad, may not improve your chances at all. It could even be declined by the lender, as it could restrict your options with lenders further.
Can You Get a Co-Signer as a First-Time Homebuyer?
Most requests for co-signer mortgages come from borrowers with low credit scores, and many of these borrowers are first-time buyers (FTBs). However, you can still apply for a co-signer mortgage, even if you’re an FTB. Just make sure to talk to an expert before jumping into things.
Who Can Co-Sign a Mortgage?
The exact definition of co-signer can vary from lender to lender. Some will tell you it has to be a close blood relative, such as a parent or grandparent. Others will accept a friend as a co-signer. To be sure, we recommend reaching out to your lender and asking them about their policy on co-signers.
Conclusion
We hope this article proves to be useful when it comes to furthering your understanding of how co-signing mortgages work and how they can help you get your loan approved. As you can see, there’s more to co-signing mortgages than you may have initially thought. Be sure to keep everything you’ve learned here in mind so that you can make the most informed decisions regarding co-signing mortgages.
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This article is for information only and should not be seen as advice or a recommendation to act. As a mortgage is secured against your home or property, it may be repossessed if you do not keep up the mortgage repayments.