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?

No, only if the landlord wishes to impose it as a condition. They will judge this on the balance of risk between (a) losing money on a bad tenant, and (b) losing prospective tenants who lack guarantors.

Six months rent is a lot of money and yes it would be counted as a liability in their credit score. Sure you intend to pay but what if you got ill next month and you couldn’t pay?

I remember that episode!

(So no judgment from me 😂)

Feels more odd that you’re surprised! There’s one friend I’d do it for no questions comes on, and 2 others that, at a push if their life depended on it I’d consider it, but otherwise hell no.

i wonder if you understand what a guarantor is rather than your friends mis undrstanding. If you do a flit, or don’t pay for ANY reason, the guarantor pays.

How would it get on their credit score. I've just drawn up a deed of guarantee and it's been signed. But noone else knows anything about it and it will just sit in my drawer. How can that possibly affect anyone's credit score?

I was guarantor for exh despite him earning 6x my salary and him having £220k in the bank, it’s stupid I had to but I couldn’t say no

No I wouldn’t be for anyone apart from my son and even then I’d go through what the ya and cs and his affordability

We do it for our student kids but I wouldn't for a friend. Anything could happen, job loss etc.

You are being unreasonable and unrealistic to expect a friend to be your guarantor. I don’t doubt you’ll pay your rent but why would a friend risk it? Not worth them taking the chance. Doing it for your own child is completely different. I’d certainly never be a guarantor for a friend and which actually be livid if they asked.

My Dad had his parents guarantor him, but he refused when I asked him to do the same for me- it's a big thing.

Nope, and I would never ask a friend to do this for me either.

I agree. When DS went to uni and needed a guarantor for his rent, his DF (my ex) did it. Both my DC know I would never be a guarantor, although I have happily lent them money in the past as I knew where I stood from the start, and it was money I could afford to lose if push came to shove.

You will be required to declare it as a potential outgoing in certain transactions, eg seeking a mortgage. Or commit fraud and say nothing.
(edit: and if they default and you don’t keep up - straight on the credit score).

Have you not seen "can't pay, we'll take it away" not a chance I'd do it!

Amazed you had the cheek to ask a friend!I have done it for my daughter but never for a friend.
No wonder they were shocked.

I agreed to be a guarantor for my friend because I genuinely believed in her. She’s ambitious, takes pride in her work, and she’s a not a dickhead. Op, you sound great, I'd back you.

Is there enough equity in the bank to buy a studio flat? If so, why rent and give the money to the landlord?

This is the sort ot thing you would ask a close family member not a friend.

I would only stand guarantor for my siblings or my daughter. I think a lot of people will feel the same. It is a big risk.

And if she loses her job through no fault of her own or gets sick? I’m sure someone like this would be devastated to not be able to pay her bills but her genuine remorse won’t be much consolation as you are asked to pay tens of thousands of pounds that she simply doesn’t have (unless you can afford it and are happy to pay in which case no problem).

So what? All pretty irrelevant.

What if she gets cancer? Needs two years off work. What if she gets hit by a bus and is in a coma for several months? Has a mental health crisis, can't leave home, loses her job. Made redundant? Scammed out of her savings?

There are so many reasons for which Guarantors end up getting called on and surprisingly few of them are because the person you're guaranteeing was at fault. They'll be mortified, remorseful, so apologetic...which is very nice but will be of zero good to you when you have a bill of thousands to cover.

I wouldn't be a Guarantor for anyone. Not my siblings, not my children.

This. The only time I think someone should be guarantor is if they intend to pay for whatever they are guaranteeing from the beginning.

I have a couple of friends who have done this for their kids with loans to help them build credit. The child (late teens or early 20s so not actually a child) has a loan in their name, the parents pay it as they always intended to and it helps with eventual mortgage applications etc. as the children have a good credit record.

Otherwise, no. How many guarantors got called on during COVID when rock solid jobs suddenly evaporated into thin air? Lots, I would guess. You can’t know what is going to happen in life.

Thanks to the Government meddling with the new "Renters Act" that has basically made private landlords virtually impossible to ever get their property bac with the abolition of section 21 notices. Yes more and more landlords will ask for guarantors for the rent.

A Guarantor signs a legally binding contract guaranteeing that if someone else does not pay the rent they will " Guaranteed" NO FAIL I WILL PAY FOR MY FRIEND IF SHE IS UNABLE TO PAY FOR ANY REASON.
That's what they are doing they have all the financial responsibility to pay that debt/rent if you dont make that rental payment in any way.
The Landlord won't even care if you can't pay the rent ...doesn't bother him ...he's got your idiot guarantor banged to rights legally.
RING RING hello Im Mr Landlord that rent you guaranteed to pay for your friend, well your friend didn't pay her £1000 rent this month. So can you make your cheque payable to Mr Landlord please because you guaranteed to pay this rent if your friend couldn't.
If the guarantor doesn't pay they will be taken to court and the court will rule that the guarantor has to pay the landlord.
The original non paying renter becomes an irrelevance at this point legally. Because the Landlord is going after the person who entered a written agreement with him to pay the rent guaranteed without fail.
So that's why you should think long and hard about being a guarantor for anyone.

The biggest most punitive contract never to sign is called a marriage certificate.