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?

Of course not. That’s a massive thing to do. I would only ask my bestie whose like family. Or actual family.

what about if you pay a year upfront?

Some people seem to think it’s like a character reference - saying ‘the renter is a good person and will pay’.

They don’t realise they are accepting indefinite liability for the rent themselves.

Alternatively, they have the OP’s attitude in the first post - ‘the renter will pay, it’s fine’. They don’t take into account that people and circumstances change.

I came on to say this. Must be a mistake? Why on earth are they asking for a Guarantor if you're paying the entire rent up front? The agent must be missing something here?! I would go back and clarify. Good luck @IWillAlwaysBeinaClubWithYouin1973

I have acted as guarantor for my children at uni and would do it for a good friend in your position @IWillAlwaysBeinaClubWithYouin1973 if I was confident they had enough funds not to get into arrears.

I can understand some people would feel very nervous about it though. I hope you find someone willing to do it today.

If you expect them to trust you, put the years rent into their account and get it back when the years up if you've paid all your rent.

I see you said you have a relative or your exH to ask - perhaps if you tell them the rent is actually fully paid for the duration of the contract, they’ll be able to see there’s nothing to guarantee. I think I’d be more willing to help someone out if it was clearly just an admin requirement (or error by the sounds of it) and I saw proof the rent was paid up.

I always read the small print and the last one I read stipulated it had the same term as a mortgage in that the contract survived death. Therefore if I was guarantor and died, my estate assets would still need to pay out if the renter defaulted!

I think you can pay for guarantor services from companies now, look online. Have been in this position and it sucks. Argue with the estate agent though as others have said you shouldn't need one if you can pay upfront.

A relative has her son aged 40 living back at home after marriage break up,he has a lot of savings,we live in the SE UK,he has been unable to rent privately, and he has offered 6 months rent in advance..I personally wouldn't be able to do it because I am on a pension.what a shame you didn't go ahead with the purchase of the property.

If you have your equity, transfer say a years worth of rent to a friend. Then as guarantor theyd have the cash in the bank to pay the rent if you defaulted.

Would you trust a friend to look after your money like that and return it when asked?

If they are a guarantor for you it will affect there credit in that if they applied for a mortgage your rent will be taken into account

thats also what’s happening to you
the letting agencies will take into account that your a guarantor for your daughter and her friend

you either dont earn enough to rent or you have a crap credit score as that’s why they want a guarantor

Your also responsible for both your daughters rent and her friend which is crazy
daughter fine. daughters friend absolutely not

your already on the hook as a guarantor for 2 people
what will you do if daughters friend leaves uni
and you have to pay her share of the rent

I was asked to witness the signature of the guarantor on the contract for a friend’s flat. Before doing so l read it thoroughly to make sure l had no liability and was simply witnessing a signature. The terms and conditions absolutely horrified me. The guarantor is liable for rent, should the tenant default, including any arrears accrued, and also for any damage to the property. They are also liable for any costs the landlord incurs in pursuing payment - including legal representation/court costs.

The guarantor can’t end the agreement without the landlords’ consent unless there is a change to the tenancy agreement. It’s a legally binding contract and enforceable for the duration of the tenancy agreement and beyond, where unpaid costs or arrears remain.

Acting as a guarantor is a massive undertaking and a huge ask from friends or family. They could end up bankrupt - you may well be in a position to pay your rent with no problem now, but circumstances can change in a hearbeat.

So yes, l do know what a guarantor is, yes I do think l would stand a reasonable chance of losing thousands, and yes, you’re asking for people to guarantee that they would use their own money and assets to bail you out if you got into difficulty. And as you’re finding out, it’s an ask that affects friendships.

There are guarantor companies you can approach - see link below. Otherwise you could offer a whole years’ rent in advance in lieu of a guarantor - many landlords will accept this. But l think you’re unreasonable to be shocked that friends/family are unwilling to accept such responsibility - to be honest l think you’re unreasonable to ask.

https://www.google.com/aclk?sa=L&ai=DChcSEwiw8siP7KSNAxWUilAGHZeiHnQYABAAGgJkZw&co=1&gclid=EAIaIQobChMIsPLIj-ykjQMVlIpQBh2Xoh50EAAYASAAEgKla_D_BwE&cce=1&sig=AOD64_0MFZquKmyv7g6VaeMXMkZf-UIpHA&q&adurl&ved=2ahUKEwjl4MSP7KSNAxW6U0EAHbH2H20Q0Qx6BAgKEAE

They would be guaranteeing the rent for as long as the OP lived in the property- if she became ill 5 or 10 years from now and couldn’t pay they would still be on the hook. Therefore this wouldn’t work unless they kept the money for as long as the OP lived in the property.

Also, the landlord has no motive to evict if the tenant stops paying - he will be getting the rent from the guarantor - so the guarantor could end up owing a lot more than 6 months.

It is a ridiculous situation. Alot of people can't get guarantors but would be great tenants and never miss the rent payment.
Not to mention the 6 to 12 months upfront lots ask for.
So many people can't do either of these things .
If you have no family you basically have no hope of a guarantor . Which is understandable as it's a big commitment for people to make.
But a new system is needed for those who will never be able to get one. Otherwise they end up not being able to find somewhere to live.

Legally all fixed term tenancies convert to month to month tenancies at the end of the fixed period.

They want a guarantor to cover the OP’s rent as long as she in the property - it’s an indefinite obligation that could literally last decades.

@murasakiahh I used to love watching that programme years ago. I remember that episode. I definitely wouldn’t be a guarantor for anyone.

I guaranteed my kids rental at Uni. I also did when they started work. I would not do so otherwise. The liabilities can be huge. Many months of rent and potentially damage. I am aware of such guarantees being called on and there is an episode of one of the bailiff shows where a child refuses to pay rent and leaves the debt with the parents, which is heart breaking to watch. I think their car is taken?

I don't understand what you find so hard to understand. It's a massive commitment to be somebody's guaranteur. It literally means that if the renter defaults on their payments you're responsible for those payments. It's very difficult to get out of. Furthermore landlords would usually only ever ask for it if they deemed you a financial risk. I've rented several homes and never needed a guaranteur. If a financial eatablishment deems you high risk then why the hell should a friend absorb that risk?! There isn't a friend on this land that I'd do that for. IME even good and long term friends blow hot and cold and most will sell you down the river at any point if it's in their interest. Sorry but no way would I trust you either. Good for your friends for not being mugs.

I'm a bit confused. You say it's a 6 month rental but the landlord doesn't want equity? (Iirc) Does that mean you've offered the whole 6 months rent in advance and they said no? Which is unreasonable, IMHO. If you have money from the sale and a job what's the problem? You'll be a better potential candidate than most.

I've rented before under your circumstances and paid the whole year's rent up front.

This thread reminds us all how utterly appalling the housing situation in this country is. It is almost impossible for many people to find suitable affordable rental properties and there is far too little social housing to meet needs. It is an absolute disgrace that individuals who find themselves needing to rent because of their personal situations (eg evicted from long term tenancy as landlord selling, divorce, lost job and cannot afford mortgage) are in an impossible situation - as the OP has discovered. Our governments have neglected their own people in this respect for years. I think those of us fortunate enough to have never been in this position don't realise how awful it is.

Nope I wouldn’t do it either. Sorry OP it’s just too big a risk

Ah, OK, it's been explained.

Does it really have to be rolling after the initial period is up? It still seems mad if op has equity and a job: does everyone need a guarantor these days, then?

Not a chance would I take on that risk for anyone other than my children or parents. Sister at a push maybe. Friends no.

As a guarantor for my son who was a student but dropped out for various reasons, I am having to pay his rent as he no longer gets a loan. I would not agree to do this for anyone else. Things go wrong, accidents happen, guarantors can have to end up paying.
I think there are deposit guarantee schemes where you buy a guarantee. Look into that rather than risking any more friendships.

My sympathies, OP. The rental market is bloody grim in this country. I didn't realise you need guarantors these days for normal rentals (e.g. not uni flats) but it does not surprise me.

I hope you find a guarantor quickly, or you find a rental that doesn't require one. Best of luck!