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Acting as a guarantor?

(21 Posts)
mappemonde Tue 19-May-15 14:28:38

Has anyone done this? What did it entail?

A member of DH family has asked us to act as guarantors on a rented property. DH and I are fine money wise - we can cover our own expenses each month and are both in secure employment but we don't have savings and I'm expecting DC3. Said family member has a criminal record and lots of debts and I don't particularly want to get involved in financial stuff with them, but I also wondered whether we would be accepted. Is it just a credit check or an affordability check that is involved? TIA

SausageBaconCrackling Tue 19-May-15 14:35:58

You will be checked as thoroughly as prospective tenants, both credit and affordability tests will need to be met. You will then be liable for the full rent if the tenant defaults, as well as costs for eviction etc. It's a huge ask and something I wouldn't do unless I was able, and willing, to pay up when necessary. My mum is our guarantor here and she was very wary even though I'm her child!

DorisLessingsCat Tue 19-May-15 14:44:04

Don't do it unless you can afford to pay their rent, now and for the full length of their tenancy.

I believe their are charities or public sector organisations that can act as guarantors for people who need help. Maybe direct your relative to Shelter?

specialsubject Tue 19-May-15 16:37:03

run like the wind.

a crook with a bad debt record, and you have no savings so will be wiped out if when he stops paying? And no-one has totally secure jobs.

don't even think about it.

mappemonde Tue 19-May-15 21:05:37

I feel very much like I don't want to do it - and I know we couldn't actually fulfil the ask if he didn't pay but it makes it easier than flatly refusing if I can be confident we would be turned down from the affordability test anyway. He was adamant it would just be a credit check but this seemed unlikely to me.

Thanks for all the advice.

mappemonde Tue 19-May-15 21:05:54

That's interesting about Shelter too, thank you.

Trembler49 Tue 19-May-15 21:08:39

Don't do it unless you can afford to pay it. Trust me, it will all end in tears.

Springintosummer Tue 19-May-15 21:11:28

Tell them that you would fail the credit check/affordability test. This sounds like it is true as you won't be able to afford to pay somebody else's rent.

mappemonde Tue 19-May-15 21:14:12

They know that we wouldn't fail the credit check as we are solvent and manage our money. But I am sure that if there were an affordability check we would not pass. He is adamant there will not be one.

Trembler I have that feeling.

Piratespoo Tue 19-May-15 21:16:19

Don't do it. If they default YOU will be paying their rent and any fees they incur. If they need a guarantor and their past credit history is rubbish, why would you risk your own financial security?

RandomMess Tue 19-May-15 21:21:16

Also every credit check goes on your history - tell him no, you don't want any more checks against your names & house as it could affect your ability to move in the future.

lighteningirl Tue 19-May-15 21:24:14

Just had this in our little buy to let the stepfather guaranteed a 'professional' couple late 20's who after 11 months have trashed a brand new oven in a kitchen finished the day before they moved it. Every carpet needs replacing has had to have a professional clean and we have to repaint. Turns out that he had to pay the rent for the whole year as they never got jobs, he has also lost his deposit and is so ashamed about the condition of flat has written us an apology. We are out by several hundred £s he is out by several thousand this could be you don't do it.

AbsentMindedNumpty Tue 19-May-15 21:32:50

OP, we are our DD's guarantor for her flat share while she is at uni, but we are actually paying her rent for the full term of the tenancy.

Do it if you are prepared to pay the rent for your relative's tenancy, because being a guarantor means exactly that; you are guaranteeing to the landlord that YOU will pay the rent if the tenant doesn't. don't do it.

He was adamant it would just be a credit check but this seemed unlikely to me. Yes, well he WOULD say that, wouldn't he? hmm. He should ask his parents to be guarantors.

Bearbehind Tue 19-May-15 21:37:58

A rental property check is only a public records check so it doesn't show on your file like a credit application check does.

Affordability criteria on rental properties is also pretty low. When we rented they only needed an income of 30 times the monthly rent- a £30k annual income to pay £1,000 a month rent isn't massive and there were no questions about other outgoings.

It's nothing like a mortgage application.

Just tell them you aren't prepared to do it- end of.

You can't pussy foot around with situations like this- they've probably asked you as they think you'll be too polite to say no and will feel a sense of obligation to do it.

Your obligation is to your immediate family and with 3 kids you can't put yourself under that kind of potential financial burden.

A guarantor just gets lumbered with everything when it all goes wrong- remember there's a reason why this person can't rent without a guarantor- if a letting agent doesn't trust them to pay, hence the need for a guarantor- why should you?

mappemonde Tue 19-May-15 21:44:11

You're all talking sense and I appreciate it. DH said no from the off but I feel bad but I know you're all right.

AyeAmarok Tue 19-May-15 22:37:22

Oh God, this has disaster written all over it.

Don't do it OP, you are in way too precarious a situation at the moment with your own family to comfortably pay someone else's rent. That's the only excuse you need.

And if he gave a shit about you and your family he wouldn't ask.

Felinealarmclock Wed 20-May-15 00:09:48

If you can't pay if he doesn't, you cannot be a guarantor. Not just shouldn't. Can't.

AlpacaMyBags Wed 20-May-15 00:18:26

Message withdrawn at poster's request.

Zillie77 Wed 20-May-15 02:26:14

I have done it but for a very upstanding and trustworthy friend, and additionally I had enough money in the bank to pay the entire year's rent if need be.

CakeMonster100 Wed 20-May-15 06:08:50

Please don't unless you a) have the money for the rent each month and b) are unlikely to ever see him again.

We foolishly stepped in to help with a deposit and act as guarantor for my in laws. No sign of the deposit being repaid several years down the road and it cost us several thousand in rent when they spent their housing benefit on other things instead of the rent and we had to pay up. We have to see them at family events and it grates me that they expect us to just forget the debt and act all friendly. I get reports via my mother in law on how they've had a night out and spent this and that and l resent them for not paying anything back to us. I struggle to see my nephews without feeling resentful of their parents although I know it's not their fault. We're not desperate for the money as it was our savings but at the moment we are unlikely to be able to build up that amount again while our kids are small.

Oh and they had the cheek to ask if we'd guarantee the next place they moved to! I had a begging phone call but told them we couldn't repeat the experience!

ChillySundays Sun 24-May-15 20:51:33

My friend asked me to be guarantor for her car loan. Love her to bits but had to say no since they already gone bankrupt with shed loads of debt and I couldn't take the risk as we were looking to get a car

Cake They has the cheek but no doubt bitched about how you wouldn't help!

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