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?

If it’s a 6 month rental and you’re paying 6 months’ rent up front then I don’t understand why a guarantor is required. What are they guaranteeing if you’ve already paid rent for the full rental period?

Most guarantee agreements say that the guarantor is liable for the rent as long as the tenant is living there. The landlord would be very silly to allow a guarantor to sign up for the fixed term only.

Ah that's very interesting biscuits. Thanks for explaining that to me.

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?

@IWillAlwaysBeinaClubWithYouin1973 do you know what a guarantor is? If you didn’t pay your rent they would be on the hook for it…why on earth would a friend be a guarantor? Insane

I know you don’t see it as a big deal- but it is. I know you don’t ever envision yourself not paying- but they can. Anything happens to you, you suddenly have health issues, physical or mental and they have the responsibility. It would impact them. Whilst I don’t think it’s fair they won’t accept your banked money as collateral, I don’t think knits fair to be so surprised that your friends have real and legitimate concerns. If the situation was reversed I think k you’d be lying to yourself if you said you wouldn’t have the same concerns had they approached you. Can you offer 6 months rent as the guarantee?

I imagine the letting agent is thinking ahead to the tenancy going periodic or being renewed after the initial 6 month term and you potentially defaulting later on, hence wanting a guarantor to cover any extended term of the tenancy?

It’s a bit boot and braces and would possibly mean the guarantor would find themselves liable if in a year or two your cash in the bank has run out for whatever reason and you are unable to work and benefits won’t cover the rent. It also deters tenants not paying the last few months rent if they get an eviction notice which is soon to be extended to 4 months notice when/if the new Renters Reform bill is passed this summer. It’s a bit much to expect people to agree to be liable for rent defaults that may occur years into the future though! They couldn’t force you to leave the property so you stop running up rent either so it would be a debt they had no control over. Who would agree to that?

You have a landlord reference from current property? I’d say that 6 months rent upfront (which I thought was outlawed now as prohibited payments) and your salary being within the income bracket for the rent should be enough and tell them to stick it if they won’t accept. It’s not realistic and you’re offering more (6 months upfront) than a lot of tenants can.

Just by the sheer fact that you are surprised your friends wouldn’t act as a guarantor means I definitely wouldn’t be a guarantor for you. You clearly have little money sense.

Well done for accepting the feedback, OP. I admit that I thought your first post was wildly unreasonable but you've listened to the responses and taken them on well, so fair play.

You said you signed for your dd and a flatmate without a second thought, so I wonder if you just hadn't given much consideration to what it actually means. I know a couple of people who have had to pay out as guarantors when something has gone wrong, so it isn't ever a commitment that I would enter into lightly.

Good luck with everything and I hope you find a solution.

Just to add, do you have a low credit score, despite having cash in bank? Could that be why they want a guarantor as well?

Yes, this was the case for my dd's tenancy. Indeed, the original guarantor agreement not only made me liable for the rent for as long as my dd stayed in the property, it was worded in such a way as to make me responsible indefinitely for as long as any of the joint tenants stayed on...so I could be liable even after my own dc moved out!! I refused to sign that one and renegotiated, but I know that the other parents signed the original agreement without question.

I wouldn't do it for anybody.

It is an unreasonable ask. I would never sign it unless I could afford to pay it and noone should sign unless they can afford to cover the payments.

It isn't fair to ask someone to take on that kind of risk for family never mind friends.

If I had loads of money maybe it would be different. But I can't risk the roof over my kids heads no matter what.

I did it for a friend who was left in a very bad situation with a toddler and a newborn by a cheating cunt of a husband. I’m glad I did it as she’s now financially stable 15 years on and a very good friend. We were in a really good financial position though so we didn’t have to worry about it impacting us. If we hadn’t been, I don’t know if I could have taken the risk, as much as I love my friend and know that she wouldn’t have deliberately not paid her rent.

Don't think badly of your friends, they do have to think of themselves too. I really hope you manage to get it sorted though. 💐

It still needs someone to guarantee it so I don't see the value of these

Hi OP,

There are rent guarantee companies that you could look into. The agent might even be able to recommend one. I don't know how much this costs but you could do some research.

I’m confused by those saying it’s weird and they’ve never needed a guarantor. I’ve been looking for a rental this year and every single property has asked for a guarantor, and that’s without knowing anything about my income/credit rating etc, just as standard. That includes properties on open rent as well as agencies. Maybe it’s an area thing? I don’t know. I agree it’s ridiculous they can demand this though, in the middle of a housing crisis. If people are facing homelessness and can’t get a council property but can afford rent - so stupid. And as many have pointed out, just because someone has a good income doesn’t mean they could afford your rent on top of their own living costs anyway (surely they’d be less likely to?!)
I would go and speak to your local CAB as there might be a local scheme you can access for support with it. Good luck op, it’s a bloody minefield at the minute xx

Would never

How long is your contract for OP? Is it a rolling 6 month contract Ast in the UK or a fixed contract?! Just curious as it seems most LLs are moving towards fixed term contracts?

@IWillAlwaysBeinaClubWithYouin1973 Yours is the best response to a thread I have read in a very long time. I hope you can sort it.

I would have thought it's obvious you assume the person will pay their rent - surely you just use your judgement?

I know you’ve taken on board feedback, but wanted to say it’s not always obvious. If I were a guarantor for my sister for example, she would enjoy the impact of her not paying her rent on me.

Nah, no way - because if they don't pay rent, I could not afford to do so, so I'd be lying if I said I could guarantee.

I suspect some landlords fear that tenants will overstay once the fixed period is up, then be hard to get rid of, need officially evicting via courts and for the period past the fixed term tenancy, will then not pay. I have let a property (the same one!) twice, and the second tenant did exactly this. I can understand why landlords are reluctant!

The other answer is that the landlords may well know that the property is dropping in bits and you're likely to notice and demand all sorts of work be done - with a guarantor you really can't withhold rent (not that this is ever advised) or do a moonlight flit on them.

I would never be a guarantor for anyone! Not even my best friend sorry! You don't know what's going to happen in the future their might come a time when you can't pay and then it is their debt it also can bugger up their credit rating so no I'd never do it

🥱 the irony. Did you even read the thread ?

You would have been better off coming on here first, asking the question and finding out more about what being a guarantor involves and the risk they are signing up to. Might have saved you going off on one. You could also have googled or AI'd it.

how can you not know that the guarantor takes on the risk of non-payment and that shit happens in life even if you think it won't .....

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A guarantor takes on a significant risk by becoming legally responsible for repaying a debt if the primary borrower defaults. This means the guarantor could face financial strain, potential legal action, and a damaged credit score.

Specific Risks:
Financial Liability:
If the borrower fails to repay the debt, the guarantor is obligated to do so, which can lead to financial difficulty and potential loss of assets.

Legal Action:
Failure to repay can result in legal proceedings, including court action and potential wage garnishment or seizure of assets.

Credit Score Impact:
Making payments on behalf of the borrower or defaulting on the debt can negatively affect the guarantor's credit score, making it harder to get loans or other credit in the future.

Relationship Strain:
If the guarantor must repay the debt, it can strain the relationship with the borrower.

Loss of Assets:
In some cases, the guarantor may be personally liable for the debt, potentially leading to the loss of their home or other assets

Nope absolutely not and think it was unfair of you to ask friends and not family. Why have they ghosted you ? Was your response to them not very nice when they said no?