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?

We’ve done 12 months rent in advance after a house sale. I would suggest that. We have been a guarantor to daughters/son at uni and unfortunately had to pay out for one of them when their life didn’t go as planned. We wouldn’t do it again, even for our grown up children.

I went guarantor for someone, never found out till their Tenancy ended a year later they never paid once and got a HUGE bill, which I ended up paying. Person said they'd pay me back each month and I've had one monthly payment in ten months. Will never ever do it again. It's not something I'd ever ask a friend to be honest.

They’re mostly for international students/recent immigrants, I think - because they may well have parents/relatives able and willing to act as guarantor, not eligible because they don’t live in the UK. So the company acts as the UK-based guarantor on their behalf.

It is a massive ask of anyone. A huge risk, and like many others I would only do it for close family.

As for "why do they think they have to pay" - that is EXACTLY what they will have to do if for whatever reason you default on your rent. Guarantors have to go through the same credit and affordability checks and there are many people who simply couldn't afford to pay their own rent/mortgage and someone else's too, as well as all the rest of their obligations.

You are being very unreasonable.

If you think about it anybody could fall sick e.g. Cancer and no longer be able to work. I have only ever thoug ht a family member would be a guarantor as it is a very risky undertaking.

My guess is that if the OP is 62 and is coming out of a recent divorce, she may have very little credit record either because her financial position was such she didn’t need credit or because credit was in her husband’s name.

The laws on eviction are the same at the end of the fixed period as with a rolling tenancy - another poster has said it can take over a year to get a non-paying tenant out which sounds about right.

The guarantor would be on the hook for rent / eviction costs (if the landlord did evict - if they have the guarantor covering the rent, they might not bother).

Hope you get sorted OP, it’s so stressful renting.

DC and I moved back to U.K. 4 years ago, DH was still working overseas. Agents said they were happy to use his salary (I wasn’t working here yet) then changed their mind halfway through. I had to pay a years rent upfront and still needed a guarantor - who had to be a homeowner and been in their job for over 2 years. The reasoning was if we caused more damage than the deposit was or if we didn’t move out.

When I divorced I had £110k in the bank but my income multiple which is 36x in Brighton wasn't there, a one bed flat was aboutb£1400 a month. I moved into an air BnB for a while and eventually found a house share I lived in that my bf knew the LL so let me off the deposit, references and guarantor. It's another way we are disadvantaged leaving a bad relationship

Yes, a colleague ended up in that situation. Acted as guarantor for her son and his girlfriend. They split up, her son moved out but there was no way to extract herself from the guarantor agreement.

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"?

OP they’re correct. Guarantorship may create a financial relationship between the guarantor and the tenant, so where the guarantor applies for credit or a loan, the tenants’ credit record would influence the decision. And if the tenant can’t make their repayments, the guarantors’ liability also forms part of their own credit record and may indicate that they’re over extended, affecting their own ability to obtain credit.

Guarantorship can also affect future mortgage applications. Mortgage lenders look at the income and outgoings of the applicant, including debts. And because as a guarantor you may have to pay your friend/family member’s debt at any point in the future, it can have a negative impact when they calculate accumulated debts for affordability.

I hope your a cash buyer because if your buying with a mortgage the mortgage company may take into account the amount of rent your guaranteeing for your daughter & her friend when you apply

OP have you passed their credit check? This thread has been an eye opening to the rental market. Shame you can’t avoid renting.

If you have done it for a friend, perhaps ask that friend(s)

Good for you for realising and apologising, it is good that you have had a rethink.

I do think it is a massive commitment to expect from a friend, really it should be family members you should be asking.

Hope you get it sorted.

I can see why people wouldn't but I would. And I can think of one person who would do it for me. But we are kind of on 'hide the body dispose of the weapon' level of friendship. Not literally of course.

OP, I have a few observations.

With equity in the bank you are a fool to continue to rent and not have any housing security.

With regards to the original question, you are asking people to take on potential liability for thousands of pounds. No-one in their right mind would do that.

At 62 you are at risk of a life limiting or other serious illness which may impact your income and future financial health.

I think you need to take a deep breath and have a good hard think about what you are doing, especially considering the state of rental markets and future housing security.

Feel for you OP.

While it’s true a guarantor is liable, the key is the tenant’s circumstances. Why say no to a good friend with tons of money in the bank from an house sale and who’s paid the entire 6 month tenancy in advance? Why do they think you’ll end up in arrears?

It’s not the same as acting as guarantor for someone with no savings and limited or shaky income (e.g. a student).

Unless they’re in a very tight situation themselves, a good friend would agree.

Never would I be a guarantor for anyone but my children. It’s foolish to think it reflects badly on people saying no, it’s a very risky thing to do.

Nope. For my kids only

Read. The. OP's. Updates.

I do think you are being a it harsh on your friends. They have their own financial challenges and have their families to protect.

I refused for my adult child…I genuinely feared the consequences if they defaulted. I’m 60, single and part time, with no financial buffer.

As PPs have pointed out, a guarantor is a commitment for the duration of the contract. Nobody can predict the future so 10 years down the line when I’ll be living as a pensioner, it would be financial ruin if my DS got into difficulties and defaulted.

I love my children but sorry, this is one of the things I’m not prepared (can’t afford!) to do.

OP…you are very naive (and arrogant) if you can’t grasp this. Your friends are absolutely 💯 right in saying no to you.

You shouldn't put friends in this awkward position, situations can change easily and the guarantor is there for a reason when they do .

There’s no way on God’s earth I’d be a guarantor (or do anything else that risked my personal finances) for any adult except my children. I’m not sure why you would even contemplate asking. I’ve had to act as guarantor for my uni-aged children and even then I took out insurance in case one of their flatmates didn’t pay their share.

We wouldn't and probably couldn't for adult DS as we are retired, we would be able to lend him a years rent though or help with payment for a company that provides a guarantor