Guarantor Mortgage

With this type of mortgage blood relatives, normally your parents, are bound by a clause to pay the mortgage incase the borrower can't.

Most commonly the guarantor must provide proof that they can make the payments. So if repayments aren't made then the lender is able to get the money.

The shortfall, that the guarentor seeks, is between the size of the payment and how much that borrower is able to pay.