Can't believe no friends will act as guarantors - why do they think they have to pay?

[IWillAlwaysBeinaClubWithYouin1973]

I mean do they literally think I am going to refuse to pay my rent?

Split from H last year, my home of over 30 was sold I have the equity in the bank still because I've just pulled out of a house purchase and decided to continue renting. Found a new flat within days now I am actually scared I'm not going to get it, nor anything else to rent, unless I have a guarantor. New letting agents/landlord not accepting equity, they want a guarantor as well as 6 months in advance.

I've just stood guarantor for my youngest DD and her uni flatmate, didn't think twice. I know what's involved, I would have thought it's obvious you assume the person will pay their rent - surely you just use your judgement? But had some awkward conversations with friends - we're all professional people, but they actually they think its going to affect their credit rating, ability to get a mortgage and that it will "stretch them financially"? I work, have the equity from the house in the bank, I'm 60 bloody 2! How much of a flight risk do I appear to these friends?! So far 2 said no, 2 ghosting me, I need to provide info to the agent first thing in the morning. Going to move on further down my list but it's getting more and more tenuous. I feel a bit sick to be honest.

Do you know what a guarantor is/does or would you too think you stood a reasonable chance of losing £000s, or even that I was actually asking for money in some way? Is it something that people just don't feel comfortable to do?

Same where I live. Awful. Guarantor, many saying no children as well as no pets. People asking for things like minimum salary £40k.
OP I do think you’ve misunderstood how much responsibility there is in a guarantor. However I would look for another place.

I’ve helped friends financially many times but I saw the money I’ve lent them as a gift. Because sometimes circumstances just don’t allow people to pay back, even though they have good character. It’s just life. But I would never ever ever ever be anyone’s guarantor. Not even my children. I can only give them what I have. I wouldn’t go into debt for anyone. Tough luck.
Absolutely unrealistic and unreasonable to ask a friend to be your guarantor.

Sorry but I probably wouldn't do this for a friend either. I don't think anyone takes out a mortgage or rents a place thinking they won't be able to pay their rent / bills but it happens.

When you are Guarantor that amount is counted against your own credit limit, limiting what you can borrow yourself. I was guarantor for my son when he needed a car and then got turned down for HP on furniture because I was over committed. Would only ever do it for my own children and then only as a last resort.

No. I would never do this for a friend, ever.

OP, if you're still reading - my brother uses a guarantor company. And now you mention COVID, that was the only time he was ever asked for a guarantor.

These rental companies are just ridiculous.

I’m surprised a guarantor is needed if you’re paying the full 6months rent up front. When DS went to uni his LL refused to let me be a guarantor as I didn’t quite earn enough (v expensive city!) and they way round that was to use my savings to pay the rent up front.

My first job in the morning would be to clarify why a guarantor is needed when they already have their rent - you can’t fail to pay, as you already have.

What you are missing is that the tenant may cause difficulties about moving out after the six months. The guarantor (and their estate if they die) is liable for any ongoing rent, legal costs (on both sides), losses, everything up to paying the cost of the bailiffs to repossess their own property should they run into difficulty themselves.

Bit out there but if you have loads of equity in the bank and are that desperate could you give a close friend the amount of 6 months rent then they give you it back when you move out etc. That way they don’t have the same risk because if you default on the rent they can use your own money to pay it. It would mean a lot of trust in your friend though…..

@IWillAlwaysBeinaClubWithYouin1973 sorry looks like there's pages and pages! I'm half asleep posting, good luck. Renting is tough.

Your agents should accept your equality in the bank as the reassurance you can pay, have you spoken to them about your individual situation? I wouldn’t say you can’t get anyone to do just say you don’t need it you have the proof of funds for her term of the rental.

Exactly this.

It’s a bit different being a guarantor for your child
I wouldn’t do it either no matter how good a friend you are. Why did you pull out of the house purchase? To me that looks flighty

My sister stood guarantor for someone's personal loan.

My sister paid that whole loan.

This.

I think it’s odd that they want it for a six month rental that you’ve agreed to pay up front. Have you asked them why?
would it be worth asking another letting agent their thoughts on it? (And maybe look for another property).
the reason I ask is I let property and I would have rented it to you.
ask if the landlord has rent insurance protection, it’s about £350 a year, if they don’t then they are stupid,
tbh it seems very odd, I’ve been renting out property for twenty years.

personally OP I wouldn’t be doing it either for anyone other than my own DC.

I wouldn’t do it for anybody as the risk is too much.

You never know who will fall into difficult times and from reading on here, very few have savings to fall back on if there is a job loss. That would then fall to the guarantor.

I have just checked my credit rating and the fact that I was my DD guarantor didn’t show up so that’s one thing to clear up

however it does require a huge amount of trust

and I think it’s a pretty disgusting system really

have you tried CAB? This must come up regularly

I agree with this. The road to hell is paved with good intentions. I’ve heard people say they will 💯 fulfil their obligations but then once the reality of handing over cold, hard cash over hits them, I see those intentions crumble.

That would be reasonable if it were easy to get your property back. Currently it can take a year. That's a year of non payment. With the new renters rights bill it's going to be much longer still. That's a huge risk. No landlords will soon even consider any tenants without either amazing income, credit score, track record or a property owning guarantor. When eviction is made this difficult then this is the consequence.

Hi OP,I've not read the full thread so apologies if this has already been suggested but if you're in UK there are companies who actually act as guarantors for renters be they students,retired,in receipt of benefits etc. Obviously there's a cost involved but it might be an option for you Best UK Rent Guarantor Companies (For Tenants) Best of luck!

These rental companies are just ridiculous.
But it was foreseeable. Governments have swung in favour of tenants in recent times, making life difficult for landlords. No wonder LL are either getting tough or getting out of the system altogether.

Never in a million years would I do this either.

Re your last paragraph, if a friend asked me to be their guarantor and I said no, and then they came back talking about sick pay or income protection trying to push me into agreeing to something I don't want to do, I'd be furious.

I had to put my credit card up as a guarentor when i was at uni, as i knew no one in my family could afford to pay the rent if i by some terrible occasion defualted. and that was minimal - when i look at rent prices now - as i'm having to move by the end of the year - I'm screwed, i'll never get approved in a million years!! but i also know that i'll have to go it alone!

I also wouldnt be guarentor as i simply dont have the ability to cover should the event come to pass.

I know alot of agencies will accept equity, so itmight be a case of looking through a diferent one, untill you find one that will accept it!

I wo