Should I be a guarantor for my sons mortgage?

Shinamae

He is going to get in touch with the mortgage advisor as soon as possible I will then come back with that outcome. The only other way I could help would be that I have some savings and could lend him £10,000, I know he would pay me back a certain amount a month probably £300 anyway until I have more information it’s all a bit up in the air...?‍♀️

That would be a far better option but that is a relatively small increase on the £245,000 he needs - would they be able to afford what they need for £255,000?

It is so hard these days and how galling that a builder is struggling to buy a house.

Personally I think expecting a repayment of £300 per month is quite steep but perhaps you may need it repaid quickly.
But, whatever you do, don't put your own home at risk.

why can't his wife get paid employment.
the vast majority of parents with children need two incomes to buy a house.

I would avoid being a guarantor even for your son for all the excellent reasons already given.

Welbeck for the win

No........absolutely not! Too many 'what ifs' to start with. You've done your bit....let him stand on his own two feet.
Just imagine if he lost his job or became too sick to work for some reason?

Definitely don't do it. I think he should wait until his wife is back at work. With two incomes he can get a bigger mortgage. Not many people can afford to buy a family home on one income.
What is a "ransom strip"?

No!

The problem is that your property will need to be valued and your income will be taken into account if you are a guarantor, the costs are quite high. If you are retired or only work a few hours you won’t have enough income to pay the mortgage if he can’t, the mortgage company will probably say no.

Giving him cash towards the loan is the best way you can help. This may be a case where Equity Release on your house is justified, you should take professional advice before you do that, and also consider the affect on your other children, if any.

I've just seen your post Shinamae, I am sorry but I agree with those saying don't do it. In the late 80's my late husband's friend married into a huge Greek family, and he was persuaded to act as guarantor for one of the family. He turned up at our house one night white as a sheet, he'd been summonsed for the £20K debt, the family member had defaulted and they were calling the whole loan in. We didn't see him again for about ten years, just bumped into him at Euston of all places, and he had had to sell his house to pay the debt, and ended up divorcing his wife over the stress of it all.

No one should ever offer to be guarantor if they cannot afford to repay the debt if the borrower defaults.

We were asked to act as guarantor for DD because she was a student when she bought her flat; she had a small inheritance for the deposit and was relying on letting the second bedroom to pay the mortgage. We had very carefully done our calculations and could afford to buy her out and rent it out if she defaulted. But she didn't, but careful calculations about our financial situation if she did, were very carefully calculated before we signed any documents.

I do not think the OP is any position to risk it - and she would probably be turned down by any lender.

Whiff

Your son is an adult . Therefore he is capable of making his own decisions. He needs to stand on his own to feet. Also how do you know in a few years he wouldn't turn his back on you. Don't think it can't happen. It did to me last year.

My children won't accept help towards their weddings and both brought their own houses all due to their hard work and saving. Which I very proud of.

If your son wants a more expensive house he needs to save and work for it .

You could lose your home.

My son works hard and I am very proud of him, this is not something he has asked me to do it is something that I thought I would offer to do... he knows nothing about this at all..

Thanks all for the advice......

I had neighbours long ago who were guarantors of their daughter's mortgage. They had to sell their home. So I go along with the advice already given here and hope your son finds his own way to be able to buy.

My Father's sage advice was that you should only gamble, invest in stocks and shares or loan money if you were able to lose all the money and not have repercussions, either financial or emotional. If you can help your son, acknowledging that you could be in a postition where you are paying his mortgage for months or even years without any real detriment to yourself, then why not? What is more precious than helping those we love? I have given one of my AC a large sum to help with the housing ladder, and seeing the happiness that a decent, bigger home has brought is more rewarding than anything I can remember in my whole life. If I had hung on to the money my AC would have had it after I was dead - I wouldn't have seen the difference it made, and it would likely be too late to do the same amount of good for the GC.

Point taken, and I shall heed the advice from my fellow gransnetters...many thanks...
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BlueBelle

If that’s the normal price in his area he needs to look at another area you can get practically get a small hotel for that price in my area I m not making light of it but that might be his answer

Blimey - where do you live? Round here you can't get a one room studio flat for that!

Another for Team Don't Do It. Many good reasons listed above.

Only do it if you are able to pay the mortgage if he is unable or happy to sell your home at some point if necessary.

Definitely don’t do it !
A load of reasons but some are other siblings may feel resentful they weren’t helped. Huge concerns about your home loss if defaults.WhT if for some reason he can’t work you will be liable for it all. Should his relationship dissolve and issues with separating assets. Your peace of mind , I know I would loose sleep taking on such a debt , which is what you are doing in essence.You prob won’t be able to get any other credit should you need it.The list goes on and on !

I was going to suggest you give him a loan/ deposit even, but it's already been said. Mine was a different set of circumstances where I sold a property and handed over house deposits for each daughter as much as to say " that's all you're getting ", in other words it wasn't returnable and would have been in my Will anyway so better at the time until waiting for me to die.

My D still lives in the same house with not long left to pay until it's hers before she retires.

I helped my son by taking on a small mortgage in my name (against my property) to get the amount he needed. Interest only for couple of years (very low rate). He pays me the monthly sum. The idea being as his flat appreciates and his salary increases he will be able to increase his own mortgage and take the debt off me. Just a delaying tactic really but I felt good being able to help out.

Such a lovely, kind and generous gesture and thought BUT absolutely no !!

NO NO NO, don't do it unless you can afford to be made homeless if it all goes pearshaped. Sadly I have seen this too often with friends

I'm sure someone will have already suggested this but can't you just chuck in the extra? If £245k isn't enough, tip in the extra £10k or whatever is needed. A loan or a little mortgage on your own house would be much less of a risk to you.

Sorry but I wouldn't do it. Is there definitely nowhere else in his price range or if you maybe have a bit of extra savings stashed away to help with deposit, but please don't out your own home at risk.