Unsure about being a guarantor

[Dave20]

So DWs niece is 18 and has a baby girl. She lives with her mum, DWs sister.
Now she’s a single mother and doesn’t want to be on the council list, as she thinks it’ll take too long.
She can rent privately, but needs a guarantor. You must earn a certain wage and be a home owner, which we are.
Now DW is all up for doing this because she trusts she will pay her rent and wants to help.
I have my reservations. Firstly, she’s only 18, never had a job, never paid a bill and a bit naive like young people can be.I think she’s too excited about the prospect of having a nice little flat, and is impatient to be on the council list.
DW is adamant that her niece will always pay her rent and is sensible enough to not go down the road of not paying.

However, even if she has every intention of paying, what if she can’t pay? DW just said, well in that case, we’d be notified that’s she’s fell behind on her payments and we would have to come to an arrangement. Her mum, DWs sister said she would pay the costs. DWs sister isn’t a home owner and doesn’t earn enough, she can’t be a guarantor herself.
But is it really risky being a guarantor? We have a mortgage and 3 children, we remortgage ever 2-5 years. Will this effect our applications? We have a long time on our mortgage.
What if her rent goes up? Does her benefits pay for this? I have no idea how benefits work personally.
I can’t really stop DW being a guarantor if she wants to, but we’re linked obviously financially.
Would a guarantor be linked financially to the person? Does it affect mortgage and credit applications? Is it for the duration of a tenancy?
Is it too risky?

To be honest I’m not sure that DN asked her. I think she told her the situation and DW suggested she could maybe do it, subject to her asking me.
I don’t like the thought that I’m slagging my DWs family off, but I wanted to check I wasn’t being unreasonable!
DN’s dad doesn’t have his own home and isn’t financially secure himself. I don’t know him that well to be honest, but he separated from her mum when she was about 2.

@Dave20

To be honest I’m not sure that DN asked her. I think she told her the situation and DW suggested she could maybe do it, subject to her asking me. I don’t like the thought that I’m slagging my DWs family off, but I wanted to check I wasn’t being unreasonable! DN’s dad doesn’t have his own home and isn’t financially secure himself. I don’t know him that well to be honest, but he separated from her mum when she was about 2.

PP means the baby's father presumably

I doubt very much they're trying it on. I should think they're just not very good at looking ahead or dealing with really painful decisions. Such as (sorry) whether to go ahead and have a baby with no job, no training or education on the cards, no plan, apparently no partner and 4 other people in the house. I would say it was a brave thing to do and it will be, if your DN uses this experience to grow up and get their teeth into working, childcare and all the requirements of adulthood. But at the time... it sounds like it wasn't much of a brave decision.

You would be absolutely mad to act as a guarantor in this situation.

DN is either bizarrely naive or hugely entitled.

She's chosen to have a baby at 18, despite not having her own roof over her head or a job.

Now she wants a flat, & is looking to you & DW to fund it.

Her intentions may not be that black & white, but the effect is the same. Somebody needs to give DN a reality check.

My dad, who is a millionaire and a financial adviser, always told me he would never be a guarantor for anyone. He is an extremely generous person and would happily have put up six months deposit for example but he could never have afforded an uncapped liability as in being a guarantor.
For example, if the niece falls on hard times, benefits get stopped, runs up debt, gets ill and can't work etc, she won't get a council place until she is evicted. But why would landlord go through the pain of eviction when someone is on the hook to pay in perpetuity?

PP means the baby's father presumably

You're right, I did
It seems a little odd that he's not been mentioned at all, despite several posters asking what the situation there is

DN’s father , separated from my SIL ( wife’s sister) when she was a baby. They do see each other but I don’t think he’s the greatest dad in the world.
He’s not able to help in that way. I handy had much to do with him, DN was about 4 when I first met her.

I think DN’s mam is fairly switched on.

DN moves out - financial responsibility passed to someone else. No need to be a built in babysitter. No sleep disturbed.

Job done.

I would ask how the DN is funding everything needed to set up this flat? Will it be furnished/unfurnished, kitchen items, TV/ Agency letting fees/ security deposit/requirement for one months rent in advance? If she has enough money to cover all these other costs associated with the rental (which she may not have even considered) then she can use these funds to pay for a company to act as guarantor and you/DW can support by buying items for the flat. You’re still supporting then but not taking on an unlimited liability that could have disastrous consequences for your family finances.

What about the father of the baby, OP?

Is your DN still with him? Is he working? Is he contributing any money to baby's needs?

Oh sorry. Yes the father of the baby. I just read that I haven’t mentioned him at all.
He’s 19 I think. Smokes a bit of weed, lives local and she hasn’t gone after him for money through the CSA or anything. I think he occasionally sees the child, when it suits him.
A bit of a waste of space , only met him once.

Yup, don't do this. Your DN has chosen to have a child and it's up to her to provide. If your DW wants to help, perhaps you could agree on a sum of money to gift her on a one off basis.

Apologies again- can’t believe I forgot to mention the baby’s dad. Yes I hardly know him, but he’s in the background occasionally.
They aren’t together.

Update- I got home from work in the last few minutes. It seems DW agrees with what I said last night. She also mentioned this to a school mum friend who said something like “ don’t do it! You’ll need a blank cheque book for a limitless problem!

So sense has sunk in. Being a guarantor is not a wise move. Shame she didn’t think of this straight away though!
I’ll also add that DN was fine about it, and didn’t actually ask DW, it was DW who said she’d consider it.
I’ve looked at the website someone posted about a company that for a fee, will act as a guarantor.
Maybe she should consider that, or other options.
Thanks for all your replies.

Hooray. And phew.

I have been guarantor for my DDs rental agreement for the last 2 years with a private landlord whilst she's at university. I re-mortgaged last April for my new home and it never came up with my mortgage provider.

You shouldn't act as a guarantor if you can't afford it though.

We’re guarantor for our son but I think that’s different. I don’t know if I’d want to do it for a niece. I don’t think you have to be a homeowner. Just have a steady income.

Oh thank god it's not happening 🙌🏻🙌🏻🙌🏻

Great result @Dave20