Acting as a guarantor

thesaver79

Hi,

If I am the guarantor for someone within the context of a rental agreement, in case they don't pay, would that immediately appear in my credit file or would it only appear if I, as a guarantor, didn't pay either as a fallback?

Hump

The initial credit search will appear.

General advice - don't do it, at all. If you do it make sure you read the agreement before signing and try to limit the liability to an initial 6 or 12 months (and not the length of the tenancy, which might run to years)

BitterAndTwisted

To act as a guarantor and be legally-bound it has to be signed as a Deed.

The responsibility is HUGE, so only go ahead with this if you could afford the rent for the entire duration of the tenancy. There are members of my own family who I wouldn't act as a guarantor for, as that's before you start factoring in ill-health or some other unexpected misfortune.

If rent is demanded it will only appear on your credit-record if you do not pay it, and also decline to pay once a court has ordered you to.

jackomdj

Also if the someone is a student in a HMO then you are often guaranteeing the full rent, not just your persons share. Likewise any repairs

spacey2012

Oh dear Oh Dear oh dear.
What have you done.

thesaver79

It's not an easy situation... it'd be for my partner's mum. His annual salary is just slightly below (2k) what he'd need to act as a guarantor himself.

But the whole thing makes me nervous, not really for the money but more for the impact on my future credit history. I'd happier to lend 6 months of rent...

spacey2012

If you have not signed.
NO NO NO NO !

It is a free rain for you to be ripped off left, right and centre.
They need a Guarantor because, she/ he has failed a credit check and this proves to them that she does not pay bills.
The Computer does not lie, people do.
You will end up paying the rent and for no end of fictitious repairs and damages.
Please, think what you are getting in to.

BitterAndTwisted

In which case, lend the six month's rent. It's one thing to act as guarantor for your own flesh and blood and quite another for a virtual stranger. All that needs to happen is for the two of you to split up acrimoniously and then the mother will feel she owes you nothing. Meanwhile you're responsible for the rent for the entire duration of the tenancy. That could be for years.

thesaver79

spacey2012 wrote: »

If you have not signed.
NO NO NO NO !

It is a free rain for you to be ripped off left, right and centre.
They need a Guarantor because, she/ he has failed a credit check and this proves to them that she does not pay bills.
The Computer does not lie, people do.
You will end up paying the rent and for no end of fictitious repairs and damages.
Please, think what you are getting in to.

I appreciate your concern However, the problem is not missed payments in their credit file, but their annual income which is not enough to act as a guarantor.

thesaver79

BitterAndTwisted wrote: »

In which case, lend the six month's rent. It's one thing to act as guarantor for your own flesh and blood and quite another for a virtual stranger. All that needs to happen is for the two of you to split up acrimoniously and then the mother will feel she owes you nothing. Meanwhile you're responsible for the rent for the entire duration of the tenancy. That could be for years.

You're totally right, but it's difficult to say no...

jackomdj

thesaver79 wrote: »

I appreciate your concern However, the problem is not missed payment in their credit score, but their annual income which is not enough to act as a guarantor.

Think you will find Spacey meant your OHs Mum. Why she needs a guarantor, rather than your OH not being able to be the guarantor.