Key issue:
Parental guarantees
Case study:
Income Limits
Date:
2004-01-11
Mortgage amount:
Various

Outcome

Lenders setting higher income limits for guarantors

Detail

Minimum income of parent for most lenders is 40k and rising.Lenders in general are comfortable with parental guarantees where if serves to add to a small increase in borrowing capacity where in the future it is reasonable to forsee borrowers income increasing to comfortably accomadate any repayment shortfall.It is only envisaged as a last resort that parental assistance would be required.

 
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