Which is the best guaranteed mortgage?

Q I need a guaranteed mortgage, with my parents acting as guarantors, and wondered which lenders were best for this type of loan?

AS

A It really depends on what you need from the loan. Several lenders arrange mortgages on this basis, including Abbey National, Royal Bank of Scotland and NatWest. In most cases, they will lend only up to 75% of the purchase price, so you would need at least a 25% deposit. Loans are also generally made only where the guarantors can demonstrate that they can afford to cover the entire mortgage, as well as their own financial commitments.

However, some lenders offer alternatives. Newcastle Building Society allows guarantors to cover just the part of the mortgage which the borrower can't afford. So if you needed to borrow ?100,000 but your salary meant you'd only be eligible for a loan of ?60,000, then if your parents could demonstrate that they could meet the other ?40,000, you should qualify for the loan. It is aimed at young professionals only and is currently fixed at 5.99%. You can also borrow up to 100% of the purchase price so there's no need for a hefty deposit.

Leeds & Holbecks' First Steps guarantor mortgage is also aimed at graduates and young professionals, though the loan is based on the guarantor's ability to repay, so your parents would have to be able to cover the entire mortgage. Loans are available up to 95% of the purchase price. Northern Rock also lends up to 95% of the purchase price on a guarantor basis.