Guarantor for rent

jimlufc

Hi there. I'm about to move into a rented flat and have been told I need to supply a guarantor rather than pay a bond. This isn't a problem as my dad is going to do it for me as he is a home owner. But he did have a very good question and its probably a very simple answer. How will my landlord know hes a homeowner? And also why would my landlord want a guarantor and not a bond? I have a good job and have never been in debt.

G_M

1) your dad will need to be credit vetted by the landlord in the same way that tenants are. If he had no income, no owned-home, or had bankruptcy history etc, he would be rejected as a guarantor

2) it is unusual not to require a bond (deposit). A guarantor is not a substitute for a deposit, but is a substitute for a tenant who fails the credit vetting (eg history of debts, no income etc)

3) if YOU are a good 'risk' and pass the credit vetting (good job, good financial history), there is normally no need for a guarantor.

4) my guess is that this LL wants to avoid having to place a deposit in an approved registered deposit scheme. I see no advantage in this (to you or the LL)

5)but it does ring a slight alarm bell - a LL who is so reluctant to place a deposit in a scheme may have other reasons - avoiding tax so wants to avoid official paperwork? What ELSE is he avoiding?

Pay £3 to the Land Registry here, and download the property Title. Look at section 3 (Charges Register). Is there a bank registered with a Charge? This is a mortgage. If yes, ask the landlord to confirm he has the bank's permission to let the property out?

jimlufc

It's a private let, not through an estate agent so I haven't been credit checked. He said something about giving whatever forms my dad signs to his solicitor. My dad has never been in debt, is a homeowner and has a very well paid job. Just all seems a bit strange this method. Surely I could have asked anyone to be my guarantor and pretended they were a homeowner and had a well paid job!

G_M

jimlufc wrote: »

It's a private let, not through an estate agent so I haven't been credit checked. He said something about giving whatever forms my dad signs to his solicitor. My dad has never been in debt, is a homeowner and has a very well paid job. Just all seems a bit strange this method. Surely I could have asked anyone to be my guarantor and pretended they were a homeowner and had a well paid job!

Many LL's do not use agents, but most of them (like myself) still do credit checks!

Yes, you could give any name - but whoever signs the documents and becomes guarantor becomes legally responsible for your debts in the tenancy (rent, damage etc).

Not even credit checking you is a bad sign - this LL is a muppet! I would rent elsewhere. Have you paid him anything yet (holding deposit etc)?

Or just say your dad is not willing to take on the very real responsibility of being guarantor (you could say he wants you to stand on your own two feet!) so you'd prefer to pay a deposit. And offer to be credit checked: costs £15 - £40 eg here.

Perfectly reasonable.

jimlufc

I haven't paid him anything yet thankfully, but he is wanting £100 for the guarantor. Not sure exactly what that will be for!

Fire_Fox

jimlufc wrote: »

It's a private let, not through an estate agent so I haven't been credit checked. He said something about giving whatever forms my dad signs to his solicitor. My dad has never been in debt, is a homeowner and has a very well paid job. Just all seems a bit strange this method. Surely I could have asked anyone to be my guarantor and pretended they were a homeowner and had a well paid job!

I haven't paid him anything yet thankfully, but he is wanting £100 for the guarantor. Not sure exactly what that will be for!

G_M just told you twice that your guarantor should be credit checked - they will be able to see the mortgage, ergo it's a safe bet your father is a homeowner!

Ask your new landlord to confirm in writing that he has either a buy to let mortgage or consent to lease from his lender or owns outright. It's unusual not to take a damage deposit nor credit check the tenant and makes me wonder if he is trying to keep under the radar.

tbs624

G_M wrote: »

1) your dad will need to be credit vetted by the landlord in the same way that tenants are. If he had no income, no owned-home, or had bankruptcy history etc, he would be rejected as a guarantor

My bolding. Plenty of people get to act as guarantors for others without being OOs so rejection is not a given purely on that ground.

G_M

tbs624 wrote: »

My bolding. Plenty of people get to act as guarantors for others without being OOs so rejection is not a given purely on that ground.

True.

However I did not mean to make definitive statements about what passes/fails credit checks - I was giving examples in order to make the more general points that

a) most LL's/agents perform checks on guarantors
b) if a guarantor does not meet the LL's criteria during the check, then they will not be accepted as guarantors

The OP appeared to not realise either of these two points.