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Original poster

Asked to be a guarantor

26 replies

TheMotherofBears · 31/05/2018 21:15

I've been asked to be a rent guarantor by a family member who is self employed. They are living with another relative who is in steady employment but has been told they can't act as guarantor for the other tenant. I want to help but don't have money to spare if it all goes wrong. What should I consider and what questions should I ask before saying yes?

OP posts:

DepressedOtter · 31/05/2018 21:17

I wouldn't do it, not if you can't afford to. You are legally liable for the rent if anything. Goes wrong, and that means anything from the tenants just not paying to losing their jobs and being unable to.
I would only ever be a guarantor if I could trust that person implicitly AND could afford the repayments if it went tits up.
Say no.

Ohcomeonn · 31/05/2018 21:17

If you don't have the money then don't do it (or more accurately, you can't do it if you don't have the money)

polsha · 31/05/2018 21:17

What should I consider and what questions should I ask before saying yes?

That you are essentially taking on the debt. Don't ask any questions - just say no.

LIZS · 31/05/2018 21:18

If one tenant offered to be guarantor why can't they be lead tenant instead?

Claystone · 31/05/2018 21:19

No no no

LIZS · 31/05/2018 21:19

If one tenant offered to be guarantor why can't they be lead tenant instead? Most leases hold joint tenants jointly and severally liable.

GeorgieTheGorgeousGoat · 31/05/2018 21:19

but don't have money to spare if it all goes wrong.

Then don’t do it, because you will be legally liable for the money if they don’t pay for whatever reason.

neonyellowshoes · 31/05/2018 21:19

Can you afford six months rent plus s few hundred quid legal costs? If not, don't do it

Bigfathairyones · 31/05/2018 21:20

Don’t say yes. Unless you can afford to loose the entire amount they may owe, you cannot be guarantor.

neonyellowshoes · 31/05/2018 21:21

I used to be a landlord- I took around £3000 of the guarantor in the end.

HollowTalk · 31/05/2018 21:21

Self-employment can go horribly wrong. It's also easier to cope with self-employment if you know someone else will be legally obliged to pay your rent...

itswinetime · 31/05/2018 21:22

I want to help but don't have money to spare if it all goes wrong

Then my advice would be you don't need to ask anything, if you can't afford to make the payments if the person be them family or not doesn't, then don't be guarantor, they will come after you if needed and they will find a way to get the money and as guarantor it will be your responsibility. Don't do it.

MadeForThis · 31/05/2018 21:22

Don't do it

Bellabutterfly2016 · 31/05/2018 21:28

My brother has a rental property and the young couple who he's got in have a guarantor

The letting agents he uses are extremely efficient and take the tenants bank details and if the rent "bounces" it automatically comes out the guarantors account (in this case the girls mum!) so as not to charge the tennant a "missed payment fee"! He always gets his rent and more than half the payments have come from her Mum!!

Obviously for my brother - it's not a problem he gets the rent either way but as guarantor you need that money on standby otherwise it affects your credit rating.

I'd never do it personally.

An alternative would be for your relative to pay 3/6 months rent upfront if they're able to and if not, save up until they can!

LuluBellaBlue · 31/05/2018 21:31

The WORST decision I’ve ever made! Please don’t do it!!

Clickncollect · 31/05/2018 21:35

The only person I was happy to be a guarantor for was my Dad when he was alive because he was on benefits so his ‘income’ was guaranteed and he gave me access to his internet banking so I could arrange his finances for him so therefore I was in control the whole time and it worked perfectly for us both.
Aside from those conditions I would not be a guarantor for anybody else!

Original poster

TheMotherOfBears · 31/05/2018 21:56

@LuluBellaBlue do you mind me asking what happened to you?

PPs I do have enough savings to cover 6 months of rent but it would be my whole savings. Couldn't cover month to month with DCs nursery fees etc.

I did really want to help as these are close family members but you are making me rethink... is there a way to do it and cover myself e.g. Have a legally binding side agreement with lead tenant who claims to have savings that landlord won't consider?

OP posts:

Pannacott · 31/05/2018 22:24

If the lead tenant has savings the landlord won't consider, can they pay six months rent in advance? Or put the savings in an account in your name?

FiestaThenSiesta · 31/05/2018 22:28

If you don’t have the money, then you wouldn’t pass the credit check for a guarantor.

polsha · 31/05/2018 22:30

If you don’t have the money, then you wouldn’t pass the credit check for a guarantor.

That's not true. The whole reason people take on credit is because they don't have the money. Credit scoring works on affordability not how much money you have.

BarbaraofSevillle · 01/06/2018 05:23

What is the financial position of the self employed person? Self employed can mean anything from scraping a living earning virtually nothing, to earning a lot of money supplying professional services. Is there any chance they can pay 6-12 months rent upfront instead?

ThroughThickAndThin01 · 01/06/2018 06:12

I’d say no to anyone other than my own children.

Imchlibob · 01/06/2018 06:20

If you are close enough to this relative that you would be happy to give them the full value of their rent for the duration of the rental contract that's fine.

Otherwise just don't do it. People get bankrupted by signing guarantor agreements when they can't afford to honour them when they are invoked.

AJPTaylor · 01/06/2018 06:29

Honestly dont do it. The mere fact that he is self employed does not equal needing a guarantor. Either there is something dodgy with his credit or the ll is being unreasonable.

LoislovesStewie · 01/06/2018 06:43

Please be aware that a guarantor is responsible for all aspects of the tenancy not just the rent. So if the tenant smashes up the whole house the landlord can come to you for recompense. In effect you are a tenant but don't live in the property. I'd say no.

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