to think its stupid that a guarantor *needs* to be a UK homeowner??

[PeachyParisian]

Hopefully DH and I will be moving to the UK this autumn and we are trying to organise rented accommodation in advance.

I will be studying and DH will be unemployed initially which means our options are really very limited. I have found a landlord that is happy with student tenants but requires a guarantor to be a UK homeowner.

My DM, who is the only person I can ask to be our guarantor, does not own her own home. She us definitely in a financial position to be able to cover our rent, if we could not, which is the usual criteria. DHs parents do own their own home, but not in the UK and they are not in a position to cover our rent if we defaulted anyway.
We fully intend to pay our own rent, and can definitely afford to but this is slightly trickier to prove!

I understand a landlord needs to be sure they will get the rent, but I think the homeowner thing is absolute bollocks! especially considering fewer and fewer people can afford to own their homes/choose not to.

What can I do? I have asked if they have an alternative financial/minimum income requirement the guarantor can meet and I would pay for a landlords insurance policy if necessary. I desperately do not want to move back to England without anywhere to live and this house seems so perfect for us We had hoped that landlord direct would be easier as estate agents in North Yorkshire don't seem to want to touch students with a barge pole, regardless of the fact that I am a 'mature' student!

This country is full...
Fucking hell, best we all stop shagging then and reproducing before we're all falling off the old white cliffs of Dover.

Lol Gertie

When firms relocate their staff, they normally act as guarantors, but it can be tricky for students whose parents don't own property.

Btw: any British citizen has the right to return to the UK, even if born abroad and returning for their centenary celebrations. They also have the right to live in any EU country (barring criminal record etc)

Welcome home, OP
I hope you find a nice home to rent.

As an LL, I employ letting agents and a very important part of their work is finding reliable tenants, who have financial resources to pay the rent.
Agents run standard credit checks, similar to what a bank would do before lending money.
To have a good credit rating requires a 2-year UK credit history, because credit agencies can't reliably check overseas.
A guarantor needs a higher credit rating than a renter and being a homeowner is part of this.

Superbly put

Also bear in mind that a guarantor isn't just a guarantor for rent, they are guarantor to all the debts. This can add up with interest, costs and damage etc.

just lie about the homeowner bit OP. i did on all my private tenancies, i also didn't give the correct bank details for my guarantor. the agencies never checked and i was never in a position for them to chase the guarantor. the rental system is not designed to be fair to tenants so until it is i play by my own rules. i can understand and sympathise with the concerns of LL but they do have their heads up their arses if they think all tenants have the funds to pay 6 months etc upfront.

also, this policy/idiocy will have to change at some point as it is getting harder for people to become homeowners. at the moment we're at a point where -for the majority of us- income doesn't match the cost of living, our finances are being taxed wherever possible, it's getting harder to get a first time mortgage-especially 'earlier' in life and there is a shortage of suitable housing for people anyway. what will happen to those who leave uni etc and don't have homeowner parents etc? are they going to change the rules/laws and make it mandatory to pay 6 months rent in advance as well as the deposit? even at the cheaper end of a 1 bedroom flat you're looking at paying around £2000 to start your tenancy - and that's without removal costs etc. the whole thing/system is just ridiculous!

And alternatively you'll get an agent that actually does check (like mine did).

i'd still take the risk-they can only say no...and sometimes they might say yes

Peachy - the issue is that you have no UK credit record - is there another relative who could act as guarantor if your DM doesn't meet the requirements? You've had some good advice on this thread.

Twizzle - I am glad your guarantor has never had to be pursued. Doesn't make lying okay though.

wow, didn't notice I was living in a feudal country...

this is probably the terms of the LL's rent guarantee insurance. I have it on my property because in this area, there are many cases of people taking up a tenancy and then stopping paying in order to be evicted in order to get a council house. (Whether this works every time is unknown). Although this is absolutely NOT my current tenant, it is a risk and I can't afford six months of no rent coming in. So I need the tenant to meet the terms of the insurance.

I imagine that is what this LL also needs.

for the person who suggests lying - you presumably won't mind if someone defrauds you, and will be happy to absorb any costs. Yes?

OP: Some LLs aim for the student market, so it's worth looking around.
Your uni / college should have a list and some advice.

Usually only tenants without a good 2-year UK credit history need a guarantor. Most people who are not full-time students should be able to rent without a guarantor from about age 21.

Very risky to lie on legal documents: good agents will check and lies often catch up with you unexpectedly anyway.
If you are once caught out lying, you wreck your credit rating and may suffer more serious consequences, depending on the circumstances. Your guarantor would also be in trouble if they signed the lie.

If you lie when applying for credit, especially a mortgage, that may be treated as an attempt to defraud, or as an actual fraud if found out years later.

I know it's difficult for you but I do understand why Landlords have to put these safeguards in place. I agree with offering to pay the six month's rent upfront if you can afford to do this. But I can't see any other way round it if you want this particular house.

Its hard for home owners to disappear if things go badly.

I think now anyone with an income of under £21k and monthly rental of over £550 will be asked to provide a guarantor or 6 months rent in advance.

Oh and the guarantor generally needs to earn 36 x the monthly rental charge.

Thanks BigChoc
wowfudge the only homeowner i know is my elderly grandmother who lives off a state pension so I cannot ask her. It would be unfair to put her in a position where she feels she cannot refuse when I know she cannot afford to take on any debt I would run up. I'm fairly sure the LL would want a homeowner who also has a decent income anyway.

moving is such a bloody nightmare!

I have no intention of lying, I'm sure i'd only be found out anyway. I have already told the LL of the house we like that I don't have a homeowner guarantor and i'm waiting to hear back. She specifically rents to students but I presume students with homeowner parents!

It's not even a matter of this particular house, i'm not fussy at all! all the agents i've spoken to also want a homeowner guarantor so I thought i'd look for LL direct and i've hit the same brick wall.

Its York, if anyone can point me in a better direction!

Evilstepmam I assume you mean per annum? I had heard that before! in France, the tenant must have 36x too or they need a guarantor.
DM is very very comfortable so meets this easily, she just has zero interest in buying into the British Dream of owning your own home!

Sorry Peachy I did indeed mean per annum

An LL would be irresponsible if she allows tenants to take on a rent they can't afford, without having a guarantor.
It would be comparable to the irresponsible mortgage lending by banks a few years ago.

It's sad, but someone on very low income needs to be lowering their sights and say looking at house share - that's if housing benefit isn't sufficient for the kind of place they want, or if they are not eligible.

The point is that real property is a non-liquid asset. It's a way of saying 'you have to have a guarantor who has an asset which can't suddenly be moved out of the country if the tenant defaults on their rent.'

I am a landlord and I don't like the guarantor system at all. Many tenants will not know any homeowners they can ask, and even if they did it would be expensive and time consuming to take a guarantor to court to claim any monies owed, also LL claim would be at end of queue after mortgage lender and possibly other debtors so I think it is a very flawed set up.

Our tenants contacted us worried and upset when the letting agency tried to change them from a deposit system to a guarantor system and we agreed to continue with deposit only.
We do have very good long term tenants however, and only one property we let, I realise the situation is different for commercial LLs.

OP as others have suggested I would contact LL ( not letting agency) and explain situation and see if they will be flexible. Paying several months rent in advance would be very acceptable to me in this situation.
Good luck with your move

Thanks everyone! I still haven't heard back from the LL but there are plenty of places available to rent.
We looked into a house share and nobody was really keen to share with a married couple unfortunately. We won't be claiming any HB, student loan will cover the rent nicely which is lucky.
Some great advice, hopefully I can find an EA or LL who doesn't require a homeowner guarantor!