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?

THIS

Personally, I’d never be anyone’s guarantor except DD. You just don’t know.

IME it’s uncommon to ask anyone but family (and maybe an exceptionally close friend?). I’ve been asked by friends before and declined - not sure I’d even be accepted as I don’t own property.

My boss has offered to be my guarantor before when I was struggling to privately rent. I don’t know if that’s common or not in the UK, I declined because I felt uncomfortable with it. I guess he had minimal risks, he’d just dock my wages if I failed to pay?

Oh brilliant OP! I’m sure the friends you asked will be relieved and happy to hear you’re sorted.

Could you offer your friend 6 months rent to sit in their account whilst being guarantor for you? You say you have cash in the bank, so why not show mutual trust this way? They hold the 6 months money in their account, and act as guarantor, you get it back off them when you move out. It’s extreme but it might solve the problem if you have a trusted friend.

Did the guarantor friend have to pay out of work friend’s rent? Did guarantor friend ever get paid back?

A friend could be on the hook for 12 to 18 months worth of rent though, not just 6 months worth. If you can't afford to fund a second property, you can't, end of.

Also, not everyone is able to have money just 'resting' in their account - six months of someone elses rent would affect my universal credit, and DWP are not going to accept 'I am minding it for someone else' as an excuse.

They didn't even ask if I was a homeowner though. OP is low risk given she has an income from a pension which they could sue her for. While I don't blame landlords for not wanting to take huge risks, I don't really sympathise with the fact that some want to take zero risks. They need to put their money in a savings account rather than trying to make money out of being a landlord if they want zero risk.

Just to start by saying I am not a landlord.

The reforms are actually making things harder for tenants in a lot of places. Landlords are selling up and those that remain are looking for the perfect tenant because their risks are about to massively increase

Law of unintended consequences, I guess.

“Pile on” is a bit OTT. Most of us are incredulous that a 62 year old feels that asking a friend to be a guarantor on a property for them else is akin to asking that friend to buy them a coffee. But no, I wouldn’t do it for anyone (I don’t have children but if I did I would certainty do it for them and them only).

It wouldn’t cover anything like the whole liability though so there’s not much point.

Circumstances change. No way would I act as guarantor for anyone , my children included let alone my friends

I wouldn’t do it other than for close family and by that… I mean very close!

The friendship could break down and they decide not to pay so the legal onus is on you to pay it.

I am a landlord and have never asked for a guarantor - do you have very poor credit rating? And you are foolish to do it for anyone else. But if the lease is six months and you are paying six months up front why do they require it? What is their justification? Sounds very odd to me.

Surely for when the tenancy goes month to month?

I just wanted to give you a virtual hug, OP. I was asked to be a guarantor for a friend and I said no, but it was nothing to do with my faith in her good intentions, it was that if something went horribly wrong, if she had a financial calamity, I simply couldn't afford to pay her rent on top of my mortgage.
I get that you're paid up for the next six months but after that who can know what will happen and if people don't have the money to help then it is best they say so now.

I would only do it for my children. Wouldn't for a friend.

@IWillAlwaysBeinaClubWithYouin1973 I do think if it’s a 6 month let and you’ve offered 6 months up front plus the security deposit they are being massively unreasonable asking for a guarantor - I would look elsewhere -there will be landlords surely who would jump at that . Try using open rent to bypass agents!

In this case yes, OP has the money so unlikely to default, so the guarantor is an extra layer of protection for the landlord. But under normal circumstances the landlord would come after the guarantor, because they have guaranteed, and been vetted to the effect that they are good for the money, whereas the tenant may not be, or is refusing to pay up. Holding the guarantor to the agreement they signed up to is cheaper than chasing the tenant through the courts.

I wouldn’t do this for anyone apart from my DDs

Sorry @IWillAlwaysBeinaClubWithYouin1973 I know lots of people have said this, but I would NEVER be guarantor for anyone, except my DC. It's basically an open-ended agreement to pay any debt or rent arrears, or damages that are caused in the house. No thanks.

Only a mug would be a guarantor IMO. (For anyone other than their childten.) No WAY.

You could drop dead and your guarantor would be left liable and paying. It would be a mess. Of course no one is going to sign up. You do for your family of course. That is different.

But if you have paid the entire rental upfront then what do they still need a guarantor for?

I’ve seen this on more than one occasion, even on short term leases. It’s really odd because at the end of the initial fixed term lease period, the guarantor can usually terminate the agreement anyway unless something else is specified in the agreement.

My understanding is that once the initial fixed term tenancy agreement ends, the guarantor can be released from their obligations on request, unless something else is stipulated in the agreement.

Well no, because the executor of the will, or the administrator if there is no will, would request that the tenancy agreement be ended.