Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Lijong
    • By Lijong 18th Jun 17, 12:22 AM
    • 5Posts
    • 7Thanks
    Lijong
    To stand as guarantor
    • #1
    • 18th Jun 17, 12:22 AM
    To stand as guarantor 18th Jun 17 at 12:22 AM
    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
Page 1
    • Lord Baltimore
    • By Lord Baltimore 18th Jun 17, 1:00 AM
    • 1,295 Posts
    • 1,277 Thanks
    Lord Baltimore
    • #2
    • 18th Jun 17, 1:00 AM
    • #2
    • 18th Jun 17, 1:00 AM
    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
    all your base are belong to us
    • csgohan4
    • By csgohan4 18th Jun 17, 7:05 AM
    • 3,567 Posts
    • 2,239 Thanks
    csgohan4
    • #3
    • 18th Jun 17, 7:05 AM
    • #3
    • 18th Jun 17, 7:05 AM
    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"
    • parking_question_chap
    • By parking_question_chap 18th Jun 17, 7:19 AM
    • 1,361 Posts
    • 1,141 Thanks
    parking_question_chap
    • #4
    • 18th Jun 17, 7:19 AM
    • #4
    • 18th Jun 17, 7:19 AM
    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.
    Originally posted by csgohan4
    Yep, seconded.
    • adindas
    • By adindas 18th Jun 17, 7:29 AM
    • 3,170 Posts
    • 1,520 Thanks
    adindas
    • #5
    • 18th Jun 17, 7:29 AM
    • #5
    • 18th Jun 17, 7:29 AM
    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
    Originally posted by 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 .
    Last edited by adindas; 18-06-2017 at 8:05 AM.
    • silvercar
    • By silvercar 18th Jun 17, 9:44 AM
    • 35,515 Posts
    • 149,803 Thanks
    silvercar
    • #6
    • 18th Jun 17, 9:44 AM
    • #6
    • 18th Jun 17, 9:44 AM
    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.
    • Lord Baltimore
    • By Lord Baltimore 18th Jun 17, 6:02 PM
    • 1,295 Posts
    • 1,277 Thanks
    Lord Baltimore
    • #7
    • 18th Jun 17, 6:02 PM
    • #7
    • 18th Jun 17, 6:02 PM
    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.
    Originally posted by silvercar
    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.
    all your base are belong to us
    • cjdavies
    • By cjdavies 18th Jun 17, 6:56 PM
    • 2,400 Posts
    • 2,259 Thanks
    cjdavies
    • #8
    • 18th Jun 17, 6:56 PM
    • #8
    • 18th Jun 17, 6:56 PM
    I acted as a guarantor for my children to ensure they had somewhere decent to live.
    Originally posted by silvercar
    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.
    • silvercar
    • By silvercar 18th Jun 17, 7:01 PM
    • 35,515 Posts
    • 149,803 Thanks
    silvercar
    • #9
    • 18th Jun 17, 7:01 PM
    • #9
    • 18th Jun 17, 7:01 PM
    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.
    Originally posted by Lord Baltimore
    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.
    Originally posted by cjdavies
    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.
    • csgohan4
    • By csgohan4 18th Jun 17, 7:08 PM
    • 3,567 Posts
    • 2,239 Thanks
    csgohan4
    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.
    Originally posted by silvercar


    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"
    • Geoff1963
    • By Geoff1963 18th Jun 17, 8:07 PM
    • 618 Posts
    • 388 Thanks
    Geoff1963
    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 ?"
    • Lijong
    • By Lijong 18th Jun 17, 8:11 PM
    • 5 Posts
    • 7 Thanks
    Lijong
    Thank you all for the sounds advice and of course those super-parents who feel obliged to tell others how to parent. I will ask the LL if they will take rent in advance. I do not wish to stand as a reference to something I cannot legally do. If I am to leave I am to leave with a clean slate.

    Thanks again, much obliged.
    • adindas
    • By adindas 18th Jun 17, 8:49 PM
    • 3,170 Posts
    • 1,520 Thanks
    adindas
    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.
    Originally posted by silvercar
    I think your situation is different as you might be preparing to take over the debt if something went wrong but not everybody will be preparing to do like what you might be doing.

    This is an MSE forum is not a family advice forum. How many times we have seen here on MSE a dispute between parent and son when the parent got chase by the debt collector because of son faults.

    The op son will be renting together with two other students. Normally in the case like this you will be a guarantor for the whole house so if one of these three students fail to pay the rent the debt collector will be after the OP.

    Also you might know your son well, but you will never know what someone else son might be doing away from him. If you read the student life, some students just spend their student loan on booze, party, etc. Do not bother to pay their rent because they know they have parent as a guarantor.

    It is your son and it is your money so if you are happy to do that then fine as long as you are preparing to take over the debt or prepared to be chased by the debt collector for the money you do not owe if something goes wrong.
    Last edited by adindas; 18-06-2017 at 9:23 PM.
    • silvercar
    • By silvercar 18th Jun 17, 10:36 PM
    • 35,515 Posts
    • 149,803 Thanks
    silvercar
    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
    Originally posted by csgohan4
    Student houses are generally for 4-8 students. The chances of a group of students ALL having parents who are in a financial position to be able to pass credit checks to be guarantors is limited. Landlords know this, they also know that few students earn enough on their own to manage without a guarantor. Some flexibility is needed and landlords are aware of this.

    The op son will be renting together with two other students. Normally in the case like this you will be a guarantor for the whole house so if one of these three students fail to pay the rent the debt collector will be after the OP.
    We have always included a statement that we will only be liable for the our son's personal share of the rent.
    • Lord Baltimore
    • By Lord Baltimore 19th Jun 17, 12:51 AM
    • 1,295 Posts
    • 1,277 Thanks
    Lord Baltimore
    Student houses are generally for 4-8 students. The chances of a group of students ALL having parents who are in a financial position to be able to pass credit checks to be guarantors is limited. Landlords know this, they also know that few students earn enough on their own to manage without a guarantor. Some flexibility is needed and landlords are aware of this.
    Originally posted by silvercar
    Landlords don't want or need 4-8 guarantors; one will do. That person would never be me.

    We have always included a statement that we will only be liable for the our son's personal share of the rent.
    Originally posted by silvercar
    Not sure this would stand up if you were being pursued legally. If you are guarantor to a tenancy, you are guaranteeing the (whole) contract, not a specific person.

    Never be a guarantor unless you really are prepared to cover all the potential loss.
    all your base are belong to us
    • Geoff1963
    • By Geoff1963 19th Jun 17, 1:12 AM
    • 618 Posts
    • 388 Thanks
    Geoff1963
    My advice on lending to friends and family, is to consider it a gift ; and maybe one day, they will give you back a similar gift.
    • Lord Baltimore
    • By Lord Baltimore 19th Jun 17, 1:23 AM
    • 1,295 Posts
    • 1,277 Thanks
    Lord Baltimore
    My advice on lending to friends and family, is to consider it a gift ; and maybe one day, they will give you back a similar gift.
    Originally posted by Geoff1963
    But you wouldn't extend your optimistic generosity to strangers which is effectively what a guarantor does when guaranteeing a multi-student AST.
    all your base are belong to us
    • silvercar
    • By silvercar 19th Jun 17, 9:39 AM
    • 35,515 Posts
    • 149,803 Thanks
    silvercar
    Facts to consider.

    Your son wants to live with his mates rather than random strangers.

    If he only can choose from properties where no guarantor is required, this may limit his choice. In some towns this may be very limiting. The bottom of the student market can be very low. Consider what happens in September, those places not already snapped up are either expensive or the stuff no-one else will touch.

    Other options, including private halls, may be more expensive.

    Not sure this would stand up if you were being pursued legally. If you are guarantor to a tenancy, you are guaranteeing the (whole) contract, not a specific person.
    Add words to the effect that you are guaranteeing X amount less any rent already paid by your son. Some landlords will issue individual rental agreements.
    • LandyAndy
    • By LandyAndy 19th Jun 17, 10:20 AM
    • 23,696 Posts
    • 50,297 Thanks
    LandyAndy
    I'm intrigued to know what all those decrying standing guarantor for a student offspring did when their children were at university.
    • Mela322
    • By Mela322 19th Jun 17, 12:32 PM
    • 56 Posts
    • 41 Thanks
    Mela322
    I had no problem signing as guarantor for my son. He worked his back side off to get into UNI. We signed for 3 years and never thought for a moment that we would have to pay for him. We knew he was good with his finances and he knew how to work out his budget each year. He finishes uni this year and just got his first "adult" job and his first flat on his own, no guarantor needed.

    When we singed, it was for our son's share only and there were no credit or employment checks. I think they are more relaxed because most students have plans in place and probably the majority of students do pay.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

398Posts Today

4,600Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See https://t.co/IQ8f0Vyetu RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin