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?

OP, I’ve read your previous posts. Like others I think being a guarantor is a huge ask of someone and I’d only do it for very close family such as my own child (but would potentially do it for a very close friend if in very dire circumstances). It’s just so risky especially these days when everything seems less secure and unpredictable. Having said that, you do have a friend who said “of course”, so I’m not sure why you are going with your ex as guarantor - I would urge you to think again and accept your friend’s kind offer! Best of luck with it all.

I've been a guarantor for a dear friend who had to leave a horrible relationship. She lived with me for a few months initially and then rented for about two years while she sorted out finances and legal crap with her ex. She was not in the headspace to buy initially.

I did it because she's like a sister to me - I know her whole family, I've known her for many years and I also know she had not only a load of equity in the house she owned with her ex but she had also recently inherited a five-figure sum from a relative plus a lot of savings. I've also been a guarantor for my student niece (who grew up outside the UK and whose parents live abroad).

I don't think it's unreasonable per se to ask a close friend to act as a guarantor so long as you're prepared for them to say no. It all depends on your relationship and personal situation. Yes, it's a big ask because one could end up losing a lot if everything goes Pete Tong. But simply someone being a friend rather than a close relative isn't automatically a no-go.

It's ludicrous that the housing market for owners and tenants is so completely broken. It's like the wild west out there for tenants and I really hope you get yourself sorted.

I haven’t rtft so apologies if it has already been suggested - but I believe there are some companies who will be a guarantor for a fee. I think it’s like an insurance policy. I remember a friend using one for her dc at university as she wasn’t eligible to be guarantor herself.

Yabvu no way would I be a guarantor for anyone regardless of their circumstances. You could lose your job circs change and I'm stiched up with your rent no chance in hell.

Usually you need a guarantor because a financial institution has checked your credit and won't give you the credit in your good name. So I absolutely wouldn't be letting someone use my good name. If the bank says there's a risk you might not be able to pay and they have your info, they know more than I do.

And the risk is if you have a years lease and didn't or couldn't pay it, the guarantor has to pay the outstanding amount.

And even if you have good intentions it doesn't mean your circumstances wouldn't change

If i couldn't afford to give you the money I wouldn't guarantor it.

I have offered my guarantor some money to hold onto as surety
this also makes me feel comfortable ( I have a cushion)
when researching the topic I came across‘guarantor insurance’ which may be worth looking into
it all adds stress to the moving process !

I've been asked a few times and declined. Like others, I would only do it for my kids. You never know what's around the corner and somebody might be unable to pay through no fault of their own. I'm not prepared to take on a commitment to pay somebody else's rent.

I have friends who I'd be happy to act as guarantor for and I reckon would do the same for me (I've never been in that situation so don't know for sure) but it's a huge ask. It's not like asking someone to sign your passport form or whatever.

@IWillAlwaysBeinaClubWithYouin1973 but why does the landlord need a further safeguard if you are paying 6 months rent upfront on a 6 month contract?

Friends are acquaintances that you go and have a laugh with socially. No surer way of making them run for the hills than asking them to make serious financial commitments on your behalf.
At 62 years of age you're not a good prospect to guarantee to pay your rent if you can't. At 62 you lose your job you don't get re-employed.

I didn’t even do it for one of my own children at university. As guarantor you have to be sure you could pay if needs be. I knew I wouldn’t be able to even though I felt really bad.
Anything can happen to anyone, notably redundancy or ill health.

Probably because this God Awful Renters charter is going to be passed in Government at any minute. Where a landlord can no longer get their property back when they want it back.

Where on earth are you looking to rent that is demanding 6 months in advance and a guarantor? (While at the same time ignoring the equity you have on deposit?).

On your other point, a friend would have to be completely nuts to act as you guarantor, he’ll even a family member. Never, ever lend a lot of money to friends or family members. (And yes a guarantee is equivalent to a loan).

This

Offer the estate agent a bigger deposit.

How long are you planning on staying in rented? 6 months? A year?

It's a bit odd that a guarantor is required for a 62 year old. What are the grounds?

You could offer the friend you are asking to be a guarantor the equivalent of say 3 months rent to hold in a savings account - if they are that good a friend I presume you could trust them not to spend it, the same way they would need to trust that you would pay the rent.

Because the OP could refuse to leave and stop paying rent after the 6 months.

Sorry but we wouldn’t do it for anyone but our kids.

Honestly, it’s a hell of a lot to ask of a friend.

I would act as guarantor or my children but not for a friend. Do you have any idea how big an imposition this is??? I’m surprised you have any friends.

so does everybody who needs to rent for any reason now need a guarantor regardless of how good their credit score is?

I think most people would do it for their kids, but unlikely to do for anyone else. Possibly another family member. Friends come and go. Life is uncertain.

I did act as a Guarantor for a young student my Son knew. I won't go into too many details but he had no chance of getting the money together to pay the Years rent upfront. I was a Guarantor for him all thru his University Course even although I had never met him before. He had had an awful life and deserved a break and a bit of kindness.

This is a massive risk for someone to take. I wouldn't do it casually.

We wrung our hands over whether to do it for dad's flatmate whose parents weren't financially solvent enough. In the end we did but every time something happens I'm edgy. What if they have a row, or she gets ill, or drops out of uni?

It's stressful.

My motto has always been "never a borrower or a leader be". Along with "no good deed goes unpunished".

I've got one or two lifelong friends I would potentially do it for if they were on their knees.

I think things are heading that way. The new renters rights bill, which will be law soon, makes things so much riskier for landlords. Only gold plated tenants with guarantors are going to be considered. It absolutely won't be worth taking a chance on anyone. With so many landlords selling up as a result of the legislation, demand will far outstrip supply, meaning landlords can be pickier. And they will need to be, as evicting anyone, even non payers, could take years.

Offer them a year's rent up front.

Nope, you are being unreasonable