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?

I would only do it for my children.

But a marriage contract has reciprocal rights / obligations.

Both parties get something out of it (or at least they should).

Signing as a guarantor is one of the very, very few contracts that are enforceable in law where one party gets absolutely nothing out of signing from the very beginning.

And, as we all know, these things can happen almost overnight. One minute you are fit and healthy, then the next minute you have sustained a life-altering illness or disability meaning you can't work at all or can only work part-time.

Unless you are extremely wealthy and can easily cover any defaults, you should never become a guarantor, with the exception of possibly close family (I wouldn't even do that but I know many people do).

Yes, it only needs one of them to decide they don't like the course any longer and to return home.

They are actually a group of new graduates, but yes, anything could happen. In that case though they could sublet the empty room. I completely agree that it's a big risk in any circumstances and I certainly wouldn't do it.

To be fair, at your age and depending on your income/savings, you should be eligible for sheltered housing with your local authority. Could be a long wait though.

Me neither. Too many variables. Anything could go wrong.

Interestingly, when my ex acted as guarantor for our DS whilst he was at uni, he was retired due to ill-health and only in receipt of his state pension, plus pension credit and DLA. Not only that, but he couldn't manage money at all so had a huge amount of debt! I was quite surprised he was accepted as a guarantor!

That's astonishing. It's utterly pointless having someone like that as a guarantor. I'm asking for decent credit score and UK home ownership.

That's what I thought. If he was called upon, he would have had absolutely no way to pay! At that time, I myself was only in receipt of income-related ESA plus DLA, although I do own my home, so if DS had defaulted and I had been the guarantor, I suppose they would have put a charge on my house. Ex was only in social housing. This guarantor lark is a minefield!

I totally see how your friends declined/ghosted you I'm afraid. I wouldn't put myself forward for anyone except my children I'm afraid.

You are liable and whatever you say it's a risk.

Ask family or stump up the money up front!

They may be prevented by their contract from subletting. The absentee’s contract has not ended - the liability for it swerves to the guarantor, and it simply continues.

Well as it's my contract they aren't prevented. It's a joint and several contract so it doesn't really matter who pays. But I'm still in the camp of being a guarantor is risky and I wouldn't do it. And of course if the guarantor's daughter is the one who leaves then the guarantor is left guaranteeing the rent of her friends.

@IWillAlwaysBeinaClubWithYouin1973 I just wanted to say that I am so sorry you're going thought this. I know I posted earlier and it may have felt very unkind. I wish you well and am keeping my fingers crossed for you for a good and quick solution.

I would and have done this for my daughter who is at university, only.

Im surprised with 6 months rent up front, they still want a guarantor? But if that’s what they want, that’s what the want. What about a close family member?

P.s really hope you find a guarantor.
Sound as though you could do with some luck 🤞

I'd do it for my kids, parents and probably siblings. Noone else

OP I am so sorry you’re in this position. The rental market is truly awful.

my parents don’t own property and I’ve had many desperate scrabbles over the years including several as a professional adult with a good household income no one to leverage property against a rental..

The system is truly broken. I have known many people who refuse to guarantor their kids even. I hope things get better for you.

Perhaps, as someone mentioned you could pay a year in advance. Maybe family and friends would help in those circumstances, I know I certainly would. If this is possible, you could put the following year's rent into a separate savings account each month and add more if you are able to, this would be good security and you would have enough to move elsewhere if it didn't suit. Maybe the landlord would be OK with a yearly agreement. Good Luck.

She’s already paying 6 months in advance. Because the contract automatically goes month to month at the end and the new renters rights laws coming into force soon make it very difficult to get a tenant out, chances are the landlord is still going to want a guarantor.

It also means they are going to want the guarantor to be on the hook for as long as the OP lives there.

I think most people don’t understand the realities of renting today, including myself! I rent two properties out and for one I asked for a guarantor, it didn’t feel like a big deal. Bizarrely I have sold my home and wanting to rent in a nearby town whilst I decide if I want to buy there. I spoke to an agent and because I’m self employed they suggested I’d prob need a guarantor (my credit score is 999 the max, I’ve never missed a payment in my life or ever borrowed money off any friends or family, ever! I asked my sister to guarantor (and I will pay the 6 months rent up front) and she said no. I was gobsmacked! Reading these comments there’s so much fear, but I don’t think people realise how hard it is to secure a rental when there are 15-50 people going after each one around here!

Yes, that is the problem. People think it outrageous that anyone would ask them to be a guarantor but what are people supposed to do if they can't rent without one.

I sympathise but I’m still not going to sign up to be liable for multiple thousands of pounds indefinitely.

The way some of these contracts are written, the landlord can come after the guarantor 20 years from now. If landlords were prepared to limit liability to (for example) the first 12 months of the contract, I think a lot more people would be willing.

Frankly, I think a lot of landlords are taking advantage of people’s naivety as to exactly what they are signing up to. I would possibly be willing to guarantee for a year. There is no way I’m accepting liability forever.

Yep, there is usually a strict vetting process when it comes to guarantors because they need to know they'll get their money back!

If the law made it easier and quicker to evict non payers, then guarantors wouldn't be necessary. But it fact the law is being changed to make it even more difficult, and even slower.

Yep.