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?

Yep, I wouldn’t do it for family either.

What’s the point of potentially making myself homeless to stop a family member becoming homeless?

Needless to say, my mum, and other close relatives would be welcome to move in with me.

What is to stop everyone from doing this and just stop paying their rent?

You could ask your DD!
Wouldn’t that be your best option? As you are 62 she must be an adult?

I wouldn’t ask your ExH, he must feel gleeful that he gets to do this for you.

I didn't before when in ft employment and with references.
Was quite a shock now

I would not be a guarantor for someone else's rent or mortgate. Anything can happen and then the guarantor is liable. It could indeed affect credit ratings and certainly will affect ability to get a mortgage.

I stood as guarantor for a close relative once in a desperate situation, long story short: I now have a credit fault on my credit file that is very much affecting my credit score, luckily this was post getting a mortgage or god knows how it would have effected me.

I certainly will not do it again and think it IS a much bigger thing than you're making it out to be. Good on your friends for saying no.

The real question is why they make it so hard for people to rent/buy houses.

Op I've only read your posts - but in case no-one has mentioned them there are organisations that will be your guarantor for a fee. I'll list a couple - not used them so not a recommendation but expect the cost to be several hundreds.

https://tinyurl.com/4wk228sd

https://housinghand.co.uk/guarantor-service/

We actually considered it for our student kid as the landlords wanted so much financial information that we were unhappy providing.

It really is ridiculous to be asked, especially as you've offered 6 months upfront.

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Guarantor should assume exactly the opposite - how much do I have to cough up because if the person was solvent then no guarantor would have been required. Big ask, should not be asking anyone, including parents. People can volunteer, hearing of your predicament, but an adult should not ask anyone, apart from an arms-length banking institution.

My friend asked me twice and I said no. Why? Because I always have to lend her money which I don't mind but she has prioritised spending on holidays, clothes and her bf before paying me back. She has been late with her rent more than once. She has been off on long term sick more than once. I love her but I'm not going to be responsible for paying her rent. On that basis I wouldn't do it for anyone except my immediate family.

I think you have been very gracious, OP, in acknowledging you were wrong. Cab we stop piling on now?

Solvency has nothing to do with it. I've been asked for a guarantor on every flat I've rented and I've always been a high earner with savings. It was the same when my DH and I first rented together. It's not about whether you're currently solvent, it's about protecting the landlord's interests if your situation changes and you lose all your capital or can no longer earn, for whatever reason.

I would be guarantor for my children but literally no one else.

It’s not a question of. How solvent you are. If you have a look online at rental agencies and even renting a room in a house, many require a guarantor as standard, regardless of your personal financial position.

I'd judge it on the basis of how well I knew the person asking, what I knew of them and how precarious I felt my own situation was.

There is only one person who is not immediate family that i would do this for and it's an ex boyfriend.
We had been broke up for years and one particular time I was in a dire situation. He heard about it and gave me £10,000 and said ' don't worry about it, help me out if I'm ever stuck'.
There were no strings attached and I've offered money back over the years and now decades and he just said you needed a little help and I could help, it's all OK.
He was and still is a lovely genuinely kind man.
I wouldn't put my name down for anyone else.

This is one of the reasons I couldn't risk being a guarantor for my brother. I assume that the monthly rent payment (that you'd have to pay in the event of a default) is somehow totted up with your existing monthly commitments, and if we wanted to do any borrowing, ie mortgage etc, it would be classed as a commitment and would limit the amount we could borrow?

Because doing that and having a guarantor step in would wreck your credit rating for a start. But if it was obvious that the tenant had the means to pay and had just decided not to, then as guarantor you could contact the landlord and refuse to pay until the tenant is evicted. You would still have to pay the rent arrears and any costs the landlord incurs in the eviction process. And actually evicting them and cancelling the tenancy agreement could take months.

You seriously expect your friends to do that for you ..
You do understand it makes them liable for the rent when you don't pay .
So there's nothing to stop you getting them to guarantee it ,and then not paying . leaving them to pay it .
No one in their right mind would A agree to this for a friend or B put a friend in the uncomfortable position of asking them

I would only do this for my children.

When I lived abroad and didn't have a guarantor I had to pay 2 months deposit, first and last month and 6 upfront. it was a total of 10 months rent all at once.... killer.

Yep. Exactly right. The rental agency or landlord carry out a credit search on the potential guarantor for affordability purposes. Once you are the guarantor, if you apply for any kind of credit or a mortage, the amount of rent you are guaranteeing is classed as a commitment on top of any existing outgoings regardless of whether you are paying it or not, because at any point in the future you could become liable. This would have a direct effect on the amount you could borrow.

I wouldn't do it for anyone, except close family.

I think we've established that there are companies who offer guarantor services for private renters so no more pearl clutching required.

Yes in the case of a regular guarantor. My comment was in relation to pp mentioning paying a £300 fee to a guarantor company effectively as an insurance. I have never heard of this before.