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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

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Original poster

Unsure about being a guarantor

269 replies

Dave20 · 17/01/2022 19:49

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?

OP posts:

MrsColinRobinson · 17/01/2022 20:14

Do not do it. If you can't afford to cover the rent when she defaults you are liable and could end up with ballifs at your door.

I would never be a guarantor for anyone other than my own DC, and then only if I could cover the expenses.

saraclara · 17/01/2022 20:15

@Dave20

If she defaulted, we couldn’t pay her rent! We don’t have £750 per month spare to pay! I doubt many would. DW is convinced she’s sensible and will pay and wouldn’t put us in that position.

DW is astonishingly naive. Of course she wants to believe that her niece will pay up every month. But it's absolutely insane to act as a guarantor when you don't have enough money to even cover one month of her rent! I wouldn't be a guarantor for anyone other than my own child. And even then, only if I had enough left over every month to pay her rent (or enough savings to pay the maximum of the full contract).

Wombat98 · 17/01/2022 20:15

Nope, don't do it.

Original poster

Dave20 · 17/01/2022 20:19

What’s the chances of DW being accepted on her own then? She works part time on 10 k per year?
DW said she wouldn’t do it if our property could be at a risk. But surely that’s the reason they want a home owner?
DW didn’t seem to grasp that the guarantor is responsible for the term of the rent, if her niece had to leave early.

OP posts:

Furrydogmum · 17/01/2022 20:19

Don't do it!!

mumwon · 17/01/2022 20:23

with the best will in the world dn could get in to debt or have her universal benefit stopped for some reason or have a new boyfriend who may influence her or manipulate her financially
it can take courts over 6 months to evict & the debts could roll on getting higher & higher & dw sister SAYS she would help but realistically could she? & what if something happened to dw job?
please don't

Dontfuckingsaycheese · 17/01/2022 20:24

Based on trust of niece only I would say no. But what about her mum? Is she good for it? My sister is guarantor for my son who was 18 at the time. Now 19. I couldn’t as no income as I’m teacher training but I have savings and a bursary. But she knows I would not let her down. She knows my son might. But she knows, when rent time comes round if he can’t pay I do. And I do!! So she’s guarantor on paper. But she would never get stung for it. We are a trusting loving family. My sister trusts me. I love my son but he has not managed his finance well enough yet. He gets a good pay rise this month so fingers crossed!! Also he’s renting a room in a furnished HMO so if he can’t do it he’ll just have to vacate the room. I would recommend social housing. Is she even on the list? Single mum may push her up the priorities. But if she moves into private rental she loses some of that. So basically your niece’s mother needs to be acting as guarantor to you. If that’s not possible then I’d say no way!!! Getting housing benefit is no guarantee niece will pay rent. Also, depending on where you live, there could be a shortfall. Eg when my rent was £500 I got £420 pcm due to LHA cap. (Local housing allowance)

RealBecca · 17/01/2022 20:27

If she defaulted we couldn't pay it....

DN doesnt want to wait for a council flat

agency want someone earning £22k p/y why do you think that is?

She can trust DM all she wants but if DN ends up the position of feeding the baby or paying rent, or being warm or paying the rent, what will she choose? Energy prices are rocketing.

What if DN's daughter ends up poorly needing expensive treatment, travelor materials?

Anything can happen. All because DM doesnt want to wait.

pinkyredrose · 17/01/2022 20:27

If she defaulted on the rent you'd be legally bound to pay it. It's not your problem to solve if she refuses to get a council place.

TheDuchessOfBeddington · 17/01/2022 20:29

@Dave20

What’s the chances of DW being accepted on her own then? She works part time on 10 k per year? DW said she wouldn’t do it if our property could be at a risk. But surely that’s the reason they want a home owner? DW didn’t seem to grasp that the guarantor is responsible for the term of the rent, if her niece had to leave early.

I think they want homeowners as they are less likely to abscond. They would need the lenders agreement to put a charge on the house so that won’t happen.

2bazookas · 17/01/2022 20:29

You're not just guaranteeing the rent. You'll also be the liable for any damage to the property. If the baby's dad is in the property as joint tenant, your guarantor -liability includes him.

Since she doesn't work, presumably she's living on benefits, which might stop at any moment if she loses qualification. For instance, child goes into care, or to live with Granny or dad. 18 yr old fails to seek work. Or just a glitch at the DWP.

You have enough financial responsibility for your own home and family. I wouldn;t do it.

She HAS a home (and Mum as back up baby care); she's not on the streets. The world does not owe her a free flat.

RealBecca · 17/01/2022 20:29

Oh and benefit payments can and do get delayed. So even if DN is good for ot she could be waiting months and youd be paying (yes, you, not DW because DW cant afford it). Bloody stupid idea.

OhWhyNot · 17/01/2022 20:29

She maybe be very sensible but we can all be in a position of financial difficulty

A friend asked me I said no. She wasn’t very happy but I simply can’t fund anyone else’s rent for even one month

If I had the money I would lend money but wouldn’t be a guarantor

BooksAndGin · 17/01/2022 20:31

If you can't afford to pay the £750 a month if she defaults of course your home would be at risk. You'd be fully liable to pay it!
DO NOT DO IT. Your wife is risking everything accepting.

gamerchick · 17/01/2022 20:32

If you want to risk the first knowing about it is when the bailiffs knock at the door then you crack on.

Nothing more to say really.

DeliriaSkibbly · 17/01/2022 20:33

The reason they want a home owner is partly because of stability and a perceived better risk, but partly because if the niece defaults and you end up liable, the lender can get a charge over your property as an ultimate course of action.

A charge over your property can cause great difficulties in all sorts of ways.

As I think everyone else has said, I would not do this for a niece no matter the circumstances.If they default you're left on the hook for all the charges and you have no recourse.

EmmaH2022 · 17/01/2022 20:33

@Dave20

If she defaulted, we couldn’t pay her rent! We don’t have £750 per month spare to pay! I doubt many would. DW is convinced she’s sensible and will pay and wouldn’t put us in that position.

That's the point of a guarantor.

No way should either of you do this. What is the niece current earning situation?

MadMadMadamMim · 17/01/2022 20:33

@Dave20

What’s the chances of DW being accepted on her own then? She works part time on 10 k per year? DW said she wouldn’t do it if our property could be at a risk. But surely that’s the reason they want a home owner? DW didn’t seem to grasp that the guarantor is responsible for the term of the rent, if her niece had to leave early.

If they require a guarantor to earn a certain salary and your DW doesn't then she can't act as guarantor on her own. You should refuse to get involved.

Yes, your property is at risk, in the sense that you are guaranteeing you will pay anything your DN fails to. So, if you don't have the money how are you going to raise it? You are legally responsible for the debt. So you'll need to get a credit card to pay it, re-mortgage your house or sell your house in the absolute worst case scenario.

Your DNs debt becomes yours if you've acted as guarantor. Tell your DW this.

AlexaShutUp · 17/01/2022 20:34

No, don't do it! Even if the niece tries her best and has every intention of paying her rent, something could go wrong and you'd be liable. It's a massive risk.

She needs to wait for a council property or find another guarantor.

TheDuchessOfBeddington · 17/01/2022 20:34

I live in an expensive area and £750 would be above the cap for housing. Unless you’re in London???

godmum56 · 17/01/2022 20:36

another vote for hell no here.

BooksAndGin · 17/01/2022 20:36

I would sit and do a benefit calculator with your wife online of what DN would get benefits and housing benefit wise and show her how hard it would be for DN to afford the rent, then do basic bills she'd need to pay out electric, gas, food, travel, council tax, water, nappies etc personally and it should bring her to her senses.

holdonbaby · 17/01/2022 20:36

DM put me in a situation where a family member approached me (with dm present) asking me just this. She was early 30's, it was a 1 bed flat with low rent (for our area).

I was totally backed into a corner and was told all payments would be made etc and annoyingly dm was very pushy so I agreed.

I went to the estate agents who said they needed to contact my employer- I think to verify my wage. Thankfully employee was a close friend who knew my feelings and refused to share information or said she couldn't guarantee my job or something.

So I wasn't guarantor.

Another family member was and they lost their money and whatever else happens as a consequence.

saraclara · 17/01/2022 20:37

@Dave20

What’s the chances of DW being accepted on her own then? She works part time on 10 k per year? DW said she wouldn’t do it if our property could be at a risk. But surely that’s the reason they want a home owner? DW didn’t seem to grasp that the guarantor is responsible for the term of the rent, if her niece had to leave early.

Your DW really REALLY needs to do her research. What does she think a guarantor is for, if it's not to pay the rest of the rental term if her DN defaults or leaves the flat before the contract is finished?

The landlord need to be assured that the income that s/he is expecting, will arrive in their account over the period of the contract. The flat may well be mortgaged, so s/he needs to know that the investment is secure.

If they're going to let it to someone without the required financial security, then they need to rely on someone else providing that income and consequently their mortgage payment until the end of the contract. And that would be your DW.

Theunamedcat · 17/01/2022 20:37

If there are no council/housing association places available the housing association will help with assurance for the landlord putting a deposit down however many landlords cannot accept benefits

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