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Original poster

Being a guarantor, I'm worried!!

25 replies

Gowlane8 · 13/10/2015 07:47

My DH has been asked by his brother (my BIL) to be guarantor for a rental property. It's a 12 month agreement.

BIL has supposedly split up/left his wife, and has 2 children, (they are 9, and 17). They ( BIL and SIL) only rent their house, but it's a substantial rent per month.

Husband and I are not close to BIL, and I have only met him/ spoken to him once in 20 years! I know for a fact BIL is bad with money, having been made bankrupt about 6 years ago. This bankruptcy was for over £100k.

I don't get told much by my MIL, but I do know she has been bailing out BIL a fair bit. Probably more than husband and I will ever know. MIL is retired, in rented, and only on a pension. She has said she will pay the rent if BIL can't, - she's already coughing up the deposit and month's rent in advance.

I am extremely concerned about all this, and a bit flipping furious that hubby has just agreed without saying anything to me about it.
Surely BIL still has to pay they rent on his other house for his wife and kids??? I don't know ( nor does hubby) what his income is, but surely after being married for 19 years with 2 children he has other monetary obligations?

HELP!!

OP posts:

MythicalKings · 13/10/2015 08:04

I wouldn't touch that. Sit him down and talk sense to him.

violetbunny · 13/10/2015 08:06

Not a chance I'd go near it, and that's even without his track record.

HellKitty · 13/10/2015 08:28

No way. Why doesn't his DM, your MIL do it? Cuts out the middle man if she'd already bail him out. Both my DM and DPs DM are the names on out agreement and they're both retired so don't be fobbed off with that excuse.

NoodleNuts · 13/10/2015 10:17

Don't do it. Is your husband aware that he will be liable for the rent when if BIL doesn't pay? I can't see how MIL would be able to pay it if she is only received a pension.

I think BIL has got a cheek even asking if you have only seen him once in 20 years!

AyeAmarok · 13/10/2015 10:30

Oh dear. I think this is one of those times where you speed to step in and be the bad guy. Absolutely no way in hell should you even consider this.

Unless of course you have ~10k(?) spare and would not mind giving it to your estranged BIL.

rainbowunicorn · 13/10/2015 10:37

I would never ever be a guarantor for anybody for anything.

listsandbudgets · 13/10/2015 14:02

No. Made that mistake a few years ago. It's lost me a friend, cost me a fortune and it's still not sorted out.

BloodyDogHairs · 13/10/2015 14:06

No, I've watched enough of Judge Rinder to know that I would never be a guarantor for anyone.

UnexpectedItemInShaggingArea · 13/10/2015 14:12

You will be legally liable for all costs associated with the rental. Can you afford that?

19lottie82 · 13/10/2015 16:12

I will echo the other posters. Don't do it! Unless you are prepared to lose the cost of your BIL's rent for a year and never see it again.

TheExMotherInLaw · 13/10/2015 17:14

Don't
It will affect your own credit ratings. You will be liable for ALL of his rent for ALL of the contract, plus any extra time it takes for him to be evicted.
We looked into it carefully, and have just signed to be guarantors for our ds, so know what we have taken on, the liabilities, etc, but this is our own son.
Just Don't

Iwasbornin1993 · 13/10/2015 17:36

Definitely don't do it.

Fluffycloudland77 · 13/10/2015 22:52

No way in hell I'd go near this. I'd imagine your mil has run out of cash and their looking for the next bank account on legs.

Which is your dh. You cannot risk everything you have for him.

Original poster

Gowlane8 · 14/10/2015 07:48

and to all of you and huge THANK YOU'S!!!

PHEW, PHEW PHEW,

I got hubby to see sense. He initially agreed to helping, but he was under the impression he would just have to provide proof of his earnings with a pay slip, and that he could get out of the guarantor clause.

MIL had given hubby the idea it was all so informal, and easy, with her saying she'd cover the costs if it all went wrong. But there's no way she can afford it, and saying something isn't set in stone like hubby and I would be by signing. I was all set to throw a huge spanner in the works if hubby continued to ignore my fears.

So we're not doing it now, and we won't be entertaining any more pleas for money!

OP posts:

HellKitty · 14/10/2015 07:54

Phew!
I hate that saying 'if it all went wrong' that was bound to fill you with confidence!

NotCitrus · 14/10/2015 08:05

Oh good!
I've been a guarantor for four friends (only one at a time, plus lending a couple money for a deposit), and it's always worked out, but it is a significant risk. In this case I'd certainly avoid unless possibly the children might otherwise be homeless.

tribpot · 14/10/2015 08:11

What would be the point of proving his earnings if he wasn't going to guarantee the rent?

Very glad he has seen sense. The fact your BIL can't pay the deposit or first month's rent is not a great sign.

Fluffycloudland77 · 14/10/2015 08:29

I saw Judge Rinder the other day (a client had it on, I dont watch it) and a woman had done this for a friend, the friend defaulted and she had bailiffs at the door.

I strongly suspect your mil has run out of money.

Original poster

Gowlane8 · 14/10/2015 08:40

Funny you should say that Fluffycloudland77, it was less than a year ago that hubby and I bailed out MIL, by giving her over a grands worth of car, as she'd chucked out her other half and was left without a car, and no money!

Thinking there's a recurring theme going on...... we only ever hear from people when they want something!!!

Thank you, you're all very kind, and wise!

OP posts:

Fluffycloudland77 · 14/10/2015 11:45

Time to pull the drawbridge up then. I wouldnt bank on any inheritance, it sounds like everything goes to bil and there wont be anything left.

specialsubject · 14/10/2015 17:37

phew, indeed.

a guarantor is exactly that - if (as looks possible), the bloke pays nothing you get to pay ALL of it until he leaves. Or the remainder if he pays something and then stops paying.

sorry, 'bad with money' is no excuse. Learn to be good with it.

I hope your husband has also learned something - read the small print, although in this case it would not have been very small!

tribpot · 14/10/2015 18:45

Unfortunately I think Gowlane's husband has also learnt that his family are prepared to lie to him in order to exploit him financially :( Possibly not news, Gowlane, but hurtful nonetheless.

FishWithABicycle · 14/10/2015 21:49

Only be a guarantor if you would be willing to give 12x the monthly rent as a gift to the person you are doing it for. People who have financial sense don't generally need a guarantor. It's almost certain to end badly.

expatinscotland · 14/10/2015 21:59

You've dodged a bullet there. NFW I'd do this.

Fizrim · 14/10/2015 22:06

I would not sign up to be a guarantor. He could refuse to pay the rent and remain in the property, while you get billed every month.

From the information you have given, I would hazard a guess that he's already asked MIL and the agency have told him that she doesn't earn enough to pass the formal credit check that the guarantor undergoes.

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