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Lijong
Posts: 31 Forumite
Hi all
OK, firstly, Martin Lewis always says never to stand as a guarantor for a loan. However.....
My son is moving to University in September, 2nd year. He's seen a student house where him and 2 friends are going to be renting for 12 months. As he was in the University's accommodation last year he didn't need this but as this house is private they are asking for a rent guarantor.
I cannot stand as guarantor I rent myself and am disabled and unable to work through cancer. My wife is my carer. We have nobody we can ask to stand as guarantor. Everyone we know either can't or won't.
The landlord told him to use a company called Housing Hand who will stand guarantor for him for £300, great you may think but it also asked me to sign as a co-signor and on the application it clearly said THIS IS NOT A GUARANTOR. So I entered my details and received an email.
They need a copy of my passport, unility bill etc... it goes on to say that if they (Housing Hand) have to pay out for any reason they will look to me the "co-signer" to pay.. Their wording is this copied and pasted............
"We are currently acting as the UK Rental Guarantor for George XXX.
George XXX has nominated you as their Co-Signer for the Guarantor Agreement with us. This means that you will be required to co-sign the contract and will be responsible for reimbursing us if we need to pay out as their guarantor.
You will be sent the Contract in a separate email with instructions on how to sign and return it online.
As their Co-Signer, we also request that you provide the following documentation. You can upload these files using the link below."
What's the point in paying £300 for a guarantor for them to chase me if they have to pay out? What are they for? They've also asked for bank statements to prove I work although they say they won't credit check me. I don't work, I am terminally ill. So we don't know what to do.
Where do we go from here? It is so frustrating when you think you've found a guarantor, elbeit a paid one, and they persue me should they have to pay. So in effect I am guarantoring their guarantor.
Any advice is appreciated Lijong
OK, firstly, Martin Lewis always says never to stand as a guarantor for a loan. However.....
My son is moving to University in September, 2nd year. He's seen a student house where him and 2 friends are going to be renting for 12 months. As he was in the University's accommodation last year he didn't need this but as this house is private they are asking for a rent guarantor.
I cannot stand as guarantor I rent myself and am disabled and unable to work through cancer. My wife is my carer. We have nobody we can ask to stand as guarantor. Everyone we know either can't or won't.
The landlord told him to use a company called Housing Hand who will stand guarantor for him for £300, great you may think but it also asked me to sign as a co-signor and on the application it clearly said THIS IS NOT A GUARANTOR. So I entered my details and received an email.
They need a copy of my passport, unility bill etc... it goes on to say that if they (Housing Hand) have to pay out for any reason they will look to me the "co-signer" to pay.. Their wording is this copied and pasted............
"We are currently acting as the UK Rental Guarantor for George XXX.
George XXX has nominated you as their Co-Signer for the Guarantor Agreement with us. This means that you will be required to co-sign the contract and will be responsible for reimbursing us if we need to pay out as their guarantor.
You will be sent the Contract in a separate email with instructions on how to sign and return it online.
As their Co-Signer, we also request that you provide the following documentation. You can upload these files using the link below."
What's the point in paying £300 for a guarantor for them to chase me if they have to pay out? What are they for? They've also asked for bank statements to prove I work although they say they won't credit check me. I don't work, I am terminally ill. So we don't know what to do.
Where do we go from here? It is so frustrating when you think you've found a guarantor, elbeit a paid one, and they persue me should they have to pay. So in effect I am guarantoring their guarantor.
Any advice is appreciated Lijong
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Comments
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It does sound from your description as if you are the 'real' guarantor; you can be assured that if anything goes wrong with the tenancy, they'll be coming after you!
Your son and his friends should be able to secure accommodation without a guarantor by paying their rent 3 months in advance, which they should be able to cover from their student loans. Tell them to ask the letting agent about this and don't pay Housing Hand anything.
Students won't fancy paying rent upfront of course but this is all part of their education
Mornië utulië0 -
Never stand as guarantor for anyone, money and family should never mix. Often these contracts mean your the guarantor for the whole flat including for the student strangers.
Never stand for guarantor if you can't afford to cover their rent which it doesn't seem to be either."It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Never stand as guarantor for anyone, money and family should never mix. Often these contracts mean your the guarantor for the whole flat including for the student strangers.
Never stand for guarantor if you can't afford to cover their rent which it doesn't seem to be either.
Yep, seconded.0 -
Hi all
OK, firstly, Martin Lewis always says never to stand as a guarantor for a loan. However.....
My son is moving to University in September, 2nd year. He's seen a student house where him and 2 friends are going to be renting for 12 months. As he was in the University's accommodation last year he didn't need this but as this house is private they are asking for a rent guarantor.
I cannot stand as guarantor I rent myself and am disabled and unable to work through cancer. My wife is my carer. We have nobody we can ask to stand as guarantor. Everyone we know either can't or won't.
The landlord told him to use a company called Housing Hand who will stand guarantor for him for £300, great you may think but it also asked me to sign as a co-signor and on the application it clearly said THIS IS NOT A GUARANTOR. So I entered my details and received an email.
They need a copy of my passport, unility bill etc... it goes on to say that if they (Housing Hand) have to pay out for any reason they will look to me the "co-signer" to pay.. Their wording is this copied and pasted............
"We are currently acting as the UK Rental Guarantor for George XXX.
George XXX has nominated you as their Co-Signer for the Guarantor Agreement with us. This means that you will be required to co-sign the contract and will be responsible for reimbursing us if we need to pay out as their guarantor.
You will be sent the Contract in a separate email with instructions on how to sign and return it online.
As their Co-Signer, we also request that you provide the following documentation. You can upload these files using the link below."
What's the point in paying £300 for a guarantor for them to chase me if they have to pay out? What are they for? They've also asked for bank statements to prove I work although they say they won't credit check me. I don't work, I am terminally ill. So we don't know what to do.
Where do we go from here? It is so frustrating when you think you've found a guarantor, elbeit a paid one, and they persue me should they have to pay. So in effect I am guarantoring their guarantor.
Any advice is appreciated Lijong
He will be renting together a house/flat with two other students.
As other have said it is likely that you will be a guarantor for the whole house including his two other friends. Why he is asking you knowing you are not working. What about his other two flatmates?? Is he going to be seen as a super hero by his two other housemates ??
Your son is a second year student, so stop treating him like a child asking him to man up. He should be able to solve the problem like this without you getting involved.
There are thousands of students out there could rent university or private accommodations without guarantors.
In the situation you describe, your son must get student Loan.
So ask him to find another accommodation where student loan is enough. Many even do not require them to pay three month rents in advance, apart from deposit .0 -
I disagree with a lot of these comments.
Students often are required to have guarantors when they take on tenancies of private houses. The better landlords are the ones that stick to the rules on deposits, fire regs, registration etc and they are often the ones that require guarantors.
In a large number of university towns, if you want your offspring to have a chance at securing decent accommodation you either have to accept being a guarantor or your student will be left with a choice of private halls or an undesirable private house rental.
Incidentally, it may be that the landlord is less bothered by your income level and more interested in whether you are prepared to be a guarantor for your son. After all if his parent isn't prepared to act a s guarantor, then the landlord may well be concerned that the student won't make a good tenant.
The student rental market is a sector where there is a lot of sub standard accommodation. I acted as a guarantor for my children to ensure they had somewhere decent to live.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I disagree with a lot of these comments.
Students often are required to have guarantors when they take on tenancies of private houses. The better landlords are the ones that stick to the rules on deposits, fire regs, registration etc and they are often the ones that require guarantors.
In a large number of university towns, if you want your offspring to have a chance at securing decent accommodation you either have to accept being a guarantor or your student will be left with a choice of private halls or an undesirable private house rental.
Incidentally, it may be that the landlord is less bothered by your income level and more interested in whether you are prepared to be a guarantor for your son. After all if his parent isn't prepared to act a s guarantor, then the landlord may well be concerned that the student won't make a good tenant.
The student rental market is a sector where there is a lot of sub standard accommodation. I acted as a guarantor for my children to ensure they had somewhere decent to live.
But the OP has already stated that he cannot be a guarantor because of his personal circumstances.
You took the choice to guarantor your children and most people would have no problem with that but would you/were you as equally comfortable in supporting the entire tenancy (i.e. non-family tenants) - how is it that you were prepared to guarantor people you have never met?
I still think the better option is to avoid being a guarantor by paying rent in advance. The responsibility otherwise might come back to haunt you, the guarantor, and you will be liable for all the rent not just your kids' bit.Mornië utulië0 -
Lord_Baltimore wrote: »But the OP has already stated that he cannot be a guarantor because of his personal circumstances.
You took the choice to guarantor your children and most people would have no problem with that but would you/were you as equally comfortable in supporting the entire tenancy (i.e. non-family tenants) - how is it that you were prepared to guarantor people you have never met?
I still think the better option is to avoid being a guarantor by paying rent in advance. The responsibility otherwise might come back to haunt you, the guarantor, and you will be liable for all the rent not just your kids' bit.Difference being the OP does not work and if worse were to happen they wouldnt be able to cover it. That is the purpose of being one.
Many Landlords to students will take on a guarantor who would not pass a credit check. It is more a statement, that the parent trusts their son. In the 6 years of guaranteeing my offspring's student accommodation, only 1 actually took up an employment reference.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Many Landlords to students will take on a guarantor who would not pass a credit check. It is more a statement, that the parent trusts their son. In the 6 years of guaranteeing my offspring's student accommodation, only 1 actually took up an employment reference.
if I was a LL I would not take a guarantor who does not pass a credit check, what would be the point if I cannot guarantee the rent if the tenant defaults?
Statement is the tenant's issue not the LL. It's a business nothing personal"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Sounds like the "guarantor" in this case is equivalent to someone promising to repay the debt ; knowing they can take off you ( by whatever means ) anything they are owed.
Imagine going to Chris from "Lock, Stock and Two Smoking Barrels" and saying, "If my son ends up not paying his rent, can I borrow £300 off you ?"0
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