Wanting to help someone buy a home is personal. The decision should leave room for your own home, plans and peace of mind.
Read this guide with your questions in mind, then take the proposed documents to your own advisers.
Check two things separately: how much you could owe and which debts are covered.
An agreed limit defines the liability. For example, a guarantee may cover a stated part of a home loan. The wording may allow interest and recovery expenses in addition to that amount. [1]
Ask: “What is my maximum exposure, including costs?”
This generally means there is no fixed dollar cap on the debts covered. Exposure may extend to the whole loan balance, interest and fees. Do not assume this is an available or standard family-loan structure. [2]
Ask: “Is there a fixed limit, and can the obligations grow?”
Guaranteeing the full balance of one named loan is not necessarily an unlimited “all-monies” commitment. Ask your solicitor whether other facilities, future advances or variations are covered, and what requires your further agreement. For covered guarantees, the Banking Code sets limits by amount, category of debt or specified security; it applies to subscribing banks, not every lender. [3] [4]
If the borrower cannot pay, the lender may call on the guarantee. If you cannot meet that obligation, a property securing the guarantee—including your home—could be sold. A limited amount does not reserve a “safe” part of the property. [5]
A guarantee can also affect future borrowing and family relationships. Consider what a demand would mean if your income fell or you needed to sell, downsize or fund retirement. [5]
You can care deeply about someone’s plans and still decide a guarantee is not right for you. Explore other ways forward →
Use a solicitor and financial adviser who can consider your interests separately from the borrower’s. A lender may require independent advice before proceeding. [1]
The lender must assess whether it can release the guarantee. The loan balance, accepted property value, repayment history and current lending requirements can matter. Reaching a particular loan-to-value ratio does not automatically remove it. [6]
Agree a review point with the borrower. Ask what evidence, valuation, fees or loan changes may be needed, and request written confirmation once the guarantee and associated security have been released.
Do not assume you can withdraw simply because your plans change after the loan has been advanced. Ask your solicitor about the document’s termination provisions and any rights that apply. [4]
See how ongoing loan support works →General information, checked 13 October 2026. This guide is not a personal recommendation, legal advice or a loan approval. Lender policies, scheme rules and individual circumstances matter. Obtain independent legal and financial advice before giving a guarantee.
Bank pages describe their own policies; they are not promises that another lender will offer the same terms.
Ask about a proposed guaranteeA conversation with FRF can explain the lending structure. Your own solicitor and financial adviser can help you assess your obligations and personal position.Phone, video or office appointment. You can start with questions.
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