To not be a guarantee for my adult friend

[Rufusgy]

I've got a very close friend that is moving homes. She's ask me to be her guarantee for the next rental place.

Firstly I'm not sure why she needs one apart from the rental on the new place is ridiculous high in comparison to her earnings. She needs someone that earns in excess of 45k and this is more than double what she earns.

She is wanting to rent a two bed flat in london on her wages. For what its worth I rent a one bed in a city much cheaper.

She says she can afford it from the "profit" on her buy to let's, Shes just buying another one. However I'm concerned as she sees any money left over as being profit from these buy to lets and is counting on nothing ever going wrong or no matainace. I think if something did go wrong, had a void or interest rates rose she would very quickly come a cropper.

So aibu to just say no? She's saying that she would never hold me to it, but the rental is probabaly close to her net income each month. Her parents can't be it, as they don't earn enough.

I haven't been asked to have a guarantee since I was a student. Are they doing this because of the low wage and high rent?

Ha not that good! I didn't say its benefit fraud as it isn't. I just called her unethical. Someone else came up with the best description of a low life bottom feeder. I love / hate her really.

I might of called her out on commiting mortgage fraud as she's not allowed to let it to people on benefits.

Just say" look friend. I love you, but because I value our friendship I am not putting it under that sort of pressure. I only just about feel ok to guarantor my own mum, and even that makes me twitchy"

Ah that must have been someone else, then. The benefit fraud bit.

Glad you have sorted it without actually getting involved

It would affect your own credit rating because it is treated as your debt. If you needed a car loan they may decide you can't afford it based on your friend's loan.

I know it's irrelevant as the OP isn't going to guarantee the rent but the above isn't true indantherene

You don't enter into a credit agreement when you guarantee rent like this (unlike some other guaranteed cash type loans) therefore the 'debt' never appears on your credit file.

If it all goes tits up then any subsequent CCJ's etc will obviously affect your ability to secure credit.

rufugsy you've definitely dodged a bullet this time but I suspect your 'friend' will find more ways of trying to manipulate every situation to her advantage.

Not read the thread but I strongly advise against it. Really strongly. I made the mistake of being a guarantor to someone I thought I could 100% trust. Its ended up costing me nearly £1000 and its may cost me more as I could end up having to pay the legal fees for his eviction and for any damage to the house.

Tell her that you're not confident enough of your financial situation to help her if she gets into trouble so you're really sorry but it would be wrong for you to do it.

I wish I'd never agreed :(

Don't do it. I had a similar situation once and I never got my money back from my "friend".

So she's not even pay tax on her BTLs. I would imagine she is commiting fraud in that case and I would report her to HMRC for tax evasion.

Very glad you said no. I am a LL and have a shit tenant at the minute who has defaulted on rent. I'm going to be evicting her soon and if she had a guarantor I would go after them in a heartbeat. You would have to trust someone 110% to be their guarantor.

So she is commiting mortgage by letting to people on benefits when her mortgage supplier states that she is not legally allowed, she doesn't pay tax on rental income so she is commiting fraud and stealing from the taxpayer and she fraudulent claims for a kitchen in a rental when it was not. This is completely immoral and she is commiting several crimes here. I would be reporting her asap, friend or not. You can do it anonymously here;

<a class="break-all" href="https://online.hmrc.gov.uk/shortforms/form/TEH_IRF?dept-name=TEH&sub-dept-name=&location=39&origin=www.hmrc.gov.uk" rel="nofollow" target="_blank">online.hmrc.gov.uk/shortforms/form/TEH_IRF?dept-name=TEH&sub-dept-name=&location=39&origin=www.hmrc.gov.uk

Basic choice really

If it goes pear shaped, would you be happy to be left holding the problem?

Well as tempting as it is to report her when she goes on about me being an idiot saving money in the bank and goes on about being very shady with creaming as much money out of housing benefit as she can. I still wouldn't do it. She's got enough happing that she will come a cropper eventually without any involvement from me. I'll probabaky have to be their for emotional support.

Fuck no.
YANBU.

I don't think it's so much about trust as being willing and able to pay somebody's rent if they can't.

No way. As others have said. And I'd report her to the inland revenue for not paying tax as well.