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to ask have you ever been a guarantor for a loan ?

(32 Posts)
fecketyfeck21 Sat 13-Apr-19 10:08:44

i know someone who is thinking about doing this for her son [25] for renting a flat. what i know of him he works but can be a bit flaky, i'm concerned for her as she doesn't have much income although .she works. it's obviously not my business when all is said and done but i don't want her to be potentially exploited.
i've told her the potential pit falls if he fails to pay his rent etc that she's guarantoring but she's having none of it 'he wouldn't let me down' etc. i'm not so sure. i've got to stand back from it, but has
anyone had experience of this ?

MinisterforCheekyFuckery Sat 13-Apr-19 10:10:53

I haven't done this myself but I know people who have acted as guarantors for friends of relatives and it hasn't ended well for them. If she's determined to do it there isn't much you can do about it unfortunately.

mondaylisasmile Sat 13-Apr-19 10:14:52

I've only ever seen this end really badly.

If he was a good bet he wouldn't need a guarantor.

She's mad to consider it in her financial position - unless you wouldn't miss the rent due each month (not many people in that position) you can't afford to be a guarantor.

And she's helping him to avoid addressing his money issues, why can't he rent a room, flatshare, consider work with live in accommodation, something else? Madness.

Namechanger4dis Sat 13-Apr-19 10:17:07

Unless she can comfortably afford the payments if he defaults and would be happy to not be paid back then she can’t do it.

If he defaults she will ruin her credit and have horrendous stress. And, if she can’t pay she will end up with a CCJ.

FredaFox Sat 13-Apr-19 10:18:38

My mum did it for me, I wouldn't have got a flat without it at the time. Always paid and she never had to do anything, it's not always a bad thing

fecketyfeck21 Sat 13-Apr-19 10:20:07

thanks for addressing my concerns, i'm worried she end up with a 'can't pay' situation and end up losing her things, but you are right all i can do is make tea and offer sympathy if it goes toes up.

Lifeisabeach09 Sat 13-Apr-19 10:20:27

If he was a good bet he wouldn't need a guarantor.

Some folks need a guarantor as their income doesn't meet the 2.5-3 times rent requirement asked for by lettings agents.

I earn £23,000 a year. I needed a guarantor for a £825 flat.

lyralalala Sat 13-Apr-19 10:21:18

Only once, and for a relatively small amount of money that I'd have lent (or given) the person taking the loan, but they wanted, for their pride, to do it themselves

safariboot Sat 13-Apr-19 10:23:54

Your title says loan but your post says rent. Which is it?

I've not had to do it, but parents or others being a guarantor for students renting is becoming very common, because so many landlords demand it now.

Be aware of pitfalls. If it's a joint tenancy, each tenant and guarantor is liable for the whole rent. Plus possible further liabilities for damage. Landlords can and do go after whoever they think has the deepest pockets. Ie the LL can chase Alice's guarantor for the rent Bob didn't pay.

Afromumma Sat 13-Apr-19 10:24:28

Yes I said no. I work on one principle with money lending (because to me that's what this is if anything goes wrong) I don't lend or guarantee anything I can't afford to myself.

CloserIAm2Fine Sat 13-Apr-19 10:25:30

From the other side, my mum has often been a guarantor for me when I’ve rented privately. In my 20s I was very irresponsible financially but still always paid my rent in full and on time so she never had to pay anything through being my guarantor. Im now older, wiser and debt free but would possibly still need a guarantor due to bad credit history and low income, and I would hope she would trust me to do it again for me.

She knows her son better than you do, and also knows her financial position.

He might be a dick who won’t bother paying rent because he knows mum will pay it for him. Or he might be “a bit flaky” but still sensible enough to prioritise the roof over his head and not want to put his mum in the position of having to pay.

Afromumma Sat 13-Apr-19 10:25:53

Although if its her son, its her own risk. And understandably I can see why she would want to do it.

fecketyfeck21 Sat 13-Apr-19 10:26:48

safari sorry i wasn't clear, it's a guarantor for his renting a flat.

jenniferazp Sat 13-Apr-19 10:30:51

My partner was guarantor for his daughter’s flat . She didn’t pay the rent and he only found the ccj when he was helping her move . Luckily for him it was within the 4 weeks after it had been issued so he paid it and wasn’t on his credit record .

Foodylicious Sat 13-Apr-19 10:33:40

When I was renting you couldn't rent (at least on my wages) without a guarantor.
My sister was one for me. I was crap with money, but my rent and bills were always paid. I just didn't eat well or go out for half the month grin.

I did have a friend turn up unexpectedly at my place of work asking if I would be guarantor for her sister...
She was genuinely shocked when I said no.
She even had paperwork with her for me to look at shock.

In this situarion I think its understandable that you are worried about your friend, but this is pretty commonplace for parents and children.
It's for her to judge if he really understands it all

19lottie82 Sat 13-Apr-19 10:58:30

I earn £23,000 a year. I needed a
guarantor for a £825 flat.

No wonder! That’s over 50% of your income alone on rent, which is a LOT! And that’s before student loan and / or pension contributions.

SquishyFishy Sat 13-Apr-19 11:13:33

I have. Ended badly, as they all do. Cost me thousands.

I wouldn't ever do it again as the stress and betrayal was horrific.

sonjadog Sat 13-Apr-19 11:21:50

My parents did for me in the first flats I lived in after graduation. I think it is quite normal.

BarbaraofSevillle Sat 13-Apr-19 12:05:29

Your friend might not be accepted as a guarantor if her income is low. She would need enough to meet her own needs and her sons rent on top, which sounds unlikely. This may be a blessing in disguise.

TheQueef Sat 13-Apr-19 12:09:23

I've done it three times for my brother. It worked because I nagged him, he still struggles so I haven't really helped anything.

Isleepinahedgefund Sat 13-Apr-19 12:10:36

They shouldn't accept her as a guarantor if she can't pay the rent on top of her own outgoings. I think they usually want the guarantor to be a home owner so they will be able to get their money back if the son doesn't pay.

She obviously doesn't appreciate what kind of commitment it is, that she is signing up to pay the rent and it isn't just a formality.

mondaylisasmile Sat 13-Apr-19 12:10:55

*I earn £23,000 a year. I needed a
guarantor for a £825 flat.*

Yeah, so on paper you wouldn't be a good bet. Sorry. You may pay your rent on time 100% of the time, but landlords usually have multiple tenants competing for property.. they may have steep repair bills to cover, a mortgage to service.. it's business sense to go with the lowest risk option... Someone renting at that level of income to rent bill isn't a good bet...

SpoonBlender Sat 13-Apr-19 12:12:42

You only ever hear about the ones that end badly, everyone! Come on now. No one's going to bother to recount a positive tale spontaneously, they're boring.

I guaranteed my much younger sister for rental for two flats, and everything was absolutely fine. I'm going to be helping her again with a deposit soon. It's not an interesting story.

BuzzPeakWankBobbly Sat 13-Apr-19 12:17:26

I know someone in their 60s who remortgaged their (paid off) house to provide funding for their child's business.

It hasn't gone well sad

Practicallyperfectwithprosecco Sat 13-Apr-19 12:23:14

I earn £23,000 a year. I needed a
guarantor for a £825 flat.

Yeah, so on paper you wouldn't be a good bet. Sorry. You may pay your rent on time 100% of the time, but landlords usually have multiple tenants competing for property.. they may have steep repair bills to cover, a mortgage to service.. it's business sense to go with the lowest risk option... Someone renting at that level of income to rent bill isn't a good bet...

Sometimes you don't have a choice - average rent when I was a single mum was £850 per month for a 2 bed house. I was an nqt so not on a great wage but had no choice than to pay half my income in rent. Not everyone in the south east is a high earner and if you work full time you don't get any help from anywhere.

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