Being a Guarantor

jonathancarty

I have been asked to be a guarantor for a relative who is planning to rent a flat.

Someone has mentioned that this will affect my credit rating. Does anyone know if this is true.

Any replies much appreciated

Thanks

scrummy_mummy_2

If you act as a guarantor you sign a legally binding document that says you agree to pay the rent for your relative if they default (plus all other charges etc!)...in effect you just promise to pay for them if they don't, but don't get any tenancy rights or to actually live in the property.
Your credit rating should only be affected if your relative defaults...you then default and the Landlord takes you to court, sues you and wins a CCj against you.
Acting as a guarantor (to my knowledge) on a rental agreement is not information that is lodged anywhere central because you are not borrowing money, you don't owe any money and you have not defaulted on any payments so it is just a formalised 'promise' by you to pay on behalf of someone else if they don't.
I am a Landlord and have had guarantors against tenancy agreements...I keep a copy of the Deed of Guarantee with the tenancy Agreement on file and would not use it unless I had to present it in court.

Bottom line.
Don't think signing one will affect your credit rating because it isn't centrally lodged anywhere...unless you get taken to court and sued for non payment and given a CCj....which is lodged against you!

Word of warning.....only sign one if you are sure you relative can and will pay and that you can and will pay if they won't/can't/don't!

clutton_2

i accept guarantors for some of my tenants, and i credit check them also - what is the point in accepting a guarantor who could not pay the rent. This credit check will show on your credit file, but should not cause you problems in itself.