Fiancé has agreed to be a Guarantor - I’m not happy

With student accomadation, we were pre-warned, so we ensured our dc lived in flats whereby each person was responsible for their own rent, and not en masse. Therefore, if one student skipped the country, the others wouldn't be affected.

(ie four individual contracts in a house share, not one contract )

I’ve not seen any evidence on this thread that parents actually understand this. As you say, where there is a joint tenancy they are guaranteeing the rent on the property, not just their childs’ contribution. I woudn’t do it.

This is a very typical example of what can go wrong - and what sometimes does go wrong. It's not a 1 in a million chance. It happens quite a lot.

Unless it's university students, and people who have absolutely no credit rating at all as they are young and still live with parents; you can bet they have a bad credit rating and I would NOT sign to be guarantor. (Actually, as has been said, unless you can comfortable afford to pay someone's debt or 1 or 2 years' rent on top of all your own bills, then do not sign a guarantor agreement!) Even if it's your own adult child!

Basically, definitely refuse to be a guarantor for them because it's very likely they've got a bad credit record. If they're not a student and they're not young/still living with parents, (and just starting out in life,) then why do they need a guarantor?

As a few posters have said, there are some breathtakingly naïve people on here. I really, genuinely think some people think being a guarantor is just giving a reference to somebody. It's not! You're signing a document promising their creditors, (and the courts, and the bailiffs,) that you will pay this person's debt if they don't pay it.

As I said, if they don't pay it, it's your debt. There is no wriggle room. There is no way out. It is a watertight agreement - and you will 100% be made to pay the money owing. If you don't, you will have possessions taken from your house - and even your car (if it's paid for, and you can't prove that you need it.)

I can't drum this into people enough! Proceed with caution.

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That’s not the way it works. In most cases the guarantor is responsible for the whole of the tenancy agreement. If the the tenant falls into arrears you can’t just refuse to pay - you’ve signed an agreement in which you are legally responsible for those arrears and in many cases any damage to the property. And even after the tenancy has ended the landlord can pursue you through the courts for unpaid arrears if they have to.

If you want to end the guarantor agreement you can only do so if the landlord agrees, and if the rent is in arrears at that point, they’re not going to agree until you or the tenant settle the debt. It’s a serious commitment which has the law behind it so you can’t just back out if and when the tenant defaults.

Also, what happens if sister can’t pay the rent. Huw long do you sub them? One month? Two? Six? If fiancé decides to get tough and say he can no longer pay, he’ll be the bad guy for making his sister homeless (even though it’s their fault for not paying).

She didn’t say ‘could not’. She said ‘would not’.

The fact that they need a guarantor means that they are 'sub prime borrowers' ie not the best bet!

One unpaid invoice from the self employment, one big job on the car, or an existing debt is called in and rent will not be their priority.
If OP's fiance needs to cover the rent for them, where does that leave OP? Can he still cover his share of their outgoings? He lives with her. Or does he pay for his family, and cannot pay his share at home? That would certainly affect OP. She subsidises him, while he subsidises them.
Sure you'd love it if your other half said 'Can't contribute this month, I have to pay my family's rent.' Where would that leave you?

For all the people saying that they would do it - you must obviously have enough money/assets to cover them, and yourself, should they default - that is what you are signing up for. As long as you want to take that risk, that's fine, but don't decry those who do not wish to do this, or cannot.

Yes. One of my kids is at uni in an expensive city. And we had to be guarantors. Of course we were going to agree. Luckily, their flatmates are financially solvent from wealthy families so have paid up. We just need to get through this final year… I would never have refused though.

I wouldn't marry him or buy a house with him, because i wouldn't want to share any potential debt. I'd want to protect my mortgaged home. I'd wait until he's no longer guarantor, before getting married.

This is true... it took me a good 2 years of absolute graft to earn a decent wage self employed. Still have to work hard every day, self employed is a different kettle of fish to employed in the effort taken to turn into financial success.

I would seriously question the commitment and priorities of a man who has just shown you that he will put the desires of his family to "upsize" before you, your desires, and your future financial security. This is an ENORMOUS red flag.

He has also done a supremely stupid thing. If his sister and partner could afford the rent, they wouldn't need a guarantor. IOW, they want to live in a place they can't really afford and your fiance has put himself on the hook to pay the entire length of the lease if they can't. If he doesn't pay the landlord can sue him and he would have no defense. Landlord could also attach property to pay off the lease, including property jointly owned by the two of you once you're married. If dsis and co. pay late the landlord can ruin df's credit. He also becomes liable for any late charges, penalties etc. allowed by the contract.

NEVER become a guarantor unless you have lots and lots of money to throw around, because odds are you will need it. I have only been a guarantor for each of my children's first apartment lease, and only because I have plenty of money and could pay the leases off immediately if there were a problem.

This fiasco would be an absolute deal breaker for me. For one, I would not marry a financial fool, which he is, and second, I wouldn't marry a man who would disregard my feelings so flagrantly. He's not a keeper, OP.

This

If your brother in law has just gone self employed, then unless he's been cultivating clients before that move, money is going to be very erratic

In terms of parent guarantors for students - I agree with you. The terms are outrageous.

A home isn't the only asset and most people own some things of value e.g. a car, jewellery, electronic goods, etc. Anything that can be sold at auction to recoup some money for the LL can be listed on a controlled goods order by the enforcement agent to persuade the guarantor to enter into a payment agreement.

I would argue that making major financial decisions which could directly impact the OP and the future they should be building, just so he can portray himself as generous to his family, is not an attractive trait. As his DF she should be his first priority. I would be really put off by this and think the OP is right to be angry.

I have got through my adult life, including times of real hardship, without ever expecting let alone asking family members to bail me out; nor have they ever expected this from me. I think that generally, adults are responsible for managing their own financial affairs and not expect to be supported by others (with the possible exception of unforeseen calamities - which this isn't).

So I don't think that it is actually difficult.

TIL. I wonder how that works - being a guarantor if you have no assets to seize. Puzzling.

And do you know what I find most disgusting about your experience? THEY knew they hadn't paid for three months, but they didn't even have the decency to tell you, much less offer you an apology and an explanation.

Fair point, but I'd like to think the OP would have mentioned if the property only she has a mortgage on was in joint names (and if so, if it's owned as joint tenants or tenants-in-common, because if it's the latter, her half of the value wouldn't be at risk).

You don't have to be a homeowner to be a guarantor, although some LL/Letting Agents will insist on this.

Absolutely THIS all day long!
(And frankly, he had a ruddy cheek asking you to be his guarantor before asking his own mother!)

Its very unsual for someone to be on the deeds but not on the mortgage. Mortgage companies dont like it

This was my first thought

OP does he have any legal claim on your house - is he on the deeds?

Really? You don't see the difference between an informal "I'll help you out where I can" and a legally-binding guarantor agreement that has you on the hook for the entire rent payments every single month for the remainder of the tenancy agreement if your brother can't pay? Let's say your brother's rent is £1k pm and he loses his job in the second month of a 12-month AST with no break clause and he can't find another job. Do you have £10k surplus to pay his rent? And if not, do you understand the LL will take court action against you and anything you own is at risk? Now, do you really think that acting as a guarantor is the same as "just helping him"?

"you sound very controlling OP,"

It's not controlling to expect major financial decisions to be agreed. Not when a couple are supposed to be getting married and therefore what one person does, affects the other.

OP I would be rethinking the engagement - it's not a good sign at all that he's done this without your consent. And his sister and bil sound dumb AF, going self employed and getting a bigger house. If they need a guarantor then they can't afford this new place - many landlords would waive the guarantor requires if paid 6 months rent up front. If his sister can't afford that, she's no business upscaling!

I was guarantor once for DS at uni - never again. I was stressed until that lease ended and it was only one year. Letting agents roll lie through their teeth trying to make out it's no big deal but it is a huge fucking deal.

Your fiancé is either stupid or blasé and neither bodes well.