75% of potential home owners have never heard about a guarantor mortgage, according to a recent survey by Stafford Railway Building Society, which sees them as providing a viable solution for first time buyers.

This research comes amid recent findings from the Chartered Institute of Housing which predicts 20% of households will be renting privately by 2020.

A guarantor mortgage option could provide a solution for prospective borrowers who do not have sufficient income or a big enough deposit to secure a mortgage on their own.

Mike Heenan, chief executive of Stafford Railway Building Society, said: “If you have friends or family who have a mortgage-free property or are willing to place cash in an account with the Society (on which normal interest is paid)