Best time of year to buy a house
House hunting and want to know when the best time of year to buy a house is?Timing your purchase is critical, as depending on the season, you could be bidding against innumerable hordes, attending...
A guarantor is someone who promises to take responsibility for a loan or financial obligation if the borrower fails to repay it.
A guarantor is someone who promises to take responsibility for a loan or financial obligation if the borrower fails to repay it. Essentially, the guarantor acts as a backup or security for the lender.
A guarantor home loan is a type of mortgage where a third party, typically a family member, agrees to provide additional security for the loan. Lenders may ask for a guarantor in the case of the borrower having a low credit score or income.
Guarantors can be used as a way of obtaining a loan from a hesitant lender because of the additional layer of security they provide. It also works as a way to get into the market sooner with deposit requirements being much smaller or not required at all.
A guarantor can be released from the loan when the borrower has built up enough equity in their property. This means that the value of the property has increased, or the borrower has paid down a significant portion of the loan principal.
The timeframe for achieving this release varies depending on factors such as the size of the original deposit, any extra repayments made by the borrower, and how much the property's value has appreciated over time.
Compare your property to recent sales in the area to get a current market estimate.
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