Most banks have tightened their lending requirements and now require genuine savings of the deposit on a loan. It is not always possible for us to have the genuine savings and at Individual Home Loans we have two sorts of loans that don’t require genuine savings.

NON – GENUINE SAVING LOANS- We have access to a lender who will lend up to 95% of the purchase price of a property and does not require genuine saving in the deposit. This means that the deposit can come from a gift from a relative or from sale of an asset. The interest rate is slightly higher and you must be in your current employment for at least 12 months, you also must own more than you owe, and of course be able to afford the repayments on the loan.

GUARANTOR LOANS- These loans are designed for parents who want their child to purchase a house and the child does not have the deposit, and the parent is prepared to put their house up as security for the loan. There are two types of Guarantor Loans-

Security Guarantor- this loan is available when the person borrowing the money has sufficient income to make the payments on the loan. The guarantor is only responsible for 20% of the purchase price, but still must put their home up as security.

Income and Security Guarantor- This loan is available when the person borrowing the money dose not have sufficient income to make the loan repayments however the parents are happy to help them make up the difference. In this case the guarantor is responsible for 100% of the loan and must put their house up as security.

It is a big decision to go guarantor for your children and before you decide to do so you must insure that you are fully aware of your obligations as guarantor.

If you would like to discuss non – genuine saving loans or guarantor loans please give me a call. 

John Whitten is the Proprietor of Individual Home Loans and can be contacted on 49722081.