Letting agents asking for Guarantor's Bank Statements

jgrazz

Hello,

I'm a 20yo student who is trying to rent out a flat in Glasgow, UK. I'm international and I'm from Germany. The letting agency asked me to provide them with 3 years accounts (as my guarantor is my mum and she's self employed), 1 bill from 2012, 2011 and 2010 AND 2/3 most recent bank statements.
My mum is refusing giving them such personal details, as I'm already paying £55 as guarantor form fees and £165 as tenancy form fees.

Is this normal? Why don't they check my bank account first where they can see that last year I paid a monthly rent much higher of this one without any delays?

There's also another problem, we have already paid the deposit for the flat but we didn't sign any type of contract. Is there the possibility they keep it?

Thank you!

moromir

It sounds quite normal to me.

The whole point of a guarantor is that they cover the rent in the event that you default.

Ergo they must verify your mum's financial position.

Other than seeing her bank statements (to verify the salary she says she is giving herself) and her accounts to confirm the money is coming from that source, I'm not sure how else you expect they can verify her?

Is your mum based in the UK? I assume she is since a guarantor based in Germany is next to useless if they ever need to bring court proceedings for rent arrears.

jgrazz

moromir wrote: »

It sounds quite normal to me.

The whole point of a guarantor is that they cover the rent in the event that you default.

Ergo they must verify your mum's financial position.

Other than seeing her bank statements (to verify the salary she says she is giving herself) and her accounts to confirm the money is coming from that source, I'm not sure how else you expect they can verify her?

Is your mum based in the UK? I assume she is since a guarantor based in Germany is next to useless if they ever need to bring court proceedings for rent arrears.

My mum is based in Germany. They accept overseas guarantors. The thing is that on the guarantor form from their insurance agency the bank statements are not required.

moromir

jgrazz wrote: »

My mum is based in Germany. They accept overseas guarantors. The thing is that on the guarantor form from their insurance agency the bank statements are not required.

Just because the third party the letting agent is using to run the credit check doesn't require a bank statement doesn't mean that the letting agent doesn't require it.

The bank statement will show the letting agent that the guarantor is recieving the 'salary' they say they are receiving at the address they say they are living at.

Having a bank account generally shows that someone is in basic good standing as well, (there are maybe 1/2 banks in the UK that will give accounts to people with county court judgements, very bad credit history) and a bank will carry out much more detailed checks on someone than a letting agent can, so its almost a secondary way for letting agents to check someone is who they say they are as the bank agrees that they are.

jgrazz

moromir wrote: »

Just because the third party the letting agent is using to run the credit check doesn't require a bank statement doesn't mean that the letting agent doesn't require it.

The bank statement will show the letting agent that the guarantor is recieving the 'salary' they say they are receiving at the address they say they are living at.

Having a bank account generally shows that someone is in basic good standing as well, (there are maybe 1/2 banks in the UK that will give accounts to people with county court judgements, very bad credit history) and a bank will carry out much more detailed checks on someone than a letting agent can, so its almost a secondary way for letting agents to check someone is who they say they are as the bank agrees that they are.

But why don't they just trust the credit check by the agency I paid for?

I think they are just too demanding as I sent them the accountant/auditors details of the last three years with the proof of her income. And this is the first time they ask me for bank statements as they have never mentioned them before!

Also, can they keep the deposit I've already paid just because I don't provide them with these details?

moromir

jgrazz wrote:

But why don't they just trust the credit check by the agency I paid for?

I think they are just too demanding as I sent them the accountant/auditors details of the last three years with the proof of her income. And this is the first time they ask me for bank statements as they have never mentioned them before!

Also, can they keep the deposit I've already paid just because I don't provide them with these details?

With all due respect, you've clearly made up your mind as I have given you several very good reasons why they require what they have asked for.

As I stated before, a bank statement confirms her address and that she is who she says she is, accounts do not.

Most tenants should be asked to provide some form of proof of their address, i.e. council tax bill, bank statement etc, ergo so does a guarantor.

Regarding deposit, it depends what it was for exactly. Bearing in mind the agency have clearly done so admin and witheld the property from other potential tenants while they take up your references.

jgrazz

moromir wrote: »

Regarding deposit, it depends what it was for exactly. Bearing in mind the agency have clearly done so admin and witheld the property from other potential tenants while they take up your references.

The deposit was to take down the property from the market. But they haven't done that yet as an international bank transfer takes up to 4 days. SO the property is still on the market as they should receive the money today.

tim123456789

jgrazz wrote: »

But why don't they just trust the credit check by the agency I paid for?

Probably because you failed the credit check that you paid for, that's why they're getting a guarantor

_Andy_

"My mum is refusing giving them such personal details, as I'm already paying £55 as guarantor form fees and £165 as tenancy form fees."

What has the fees got to do with it?
Ultimately the situation is - if you want the rental, you'll have to play ball.
If your mum doesn't want to provide what they want, you're not going to get it - simple as that.

pmlindyloo

It sounds as if this is a 'holding deposit'. If you do not go ahead with the tenancy for any reason then the letting agent can keep this kind of deposit. They should have made this clear when you gave it to them.

When/if you take up the tenancy this holding deposit is usually deducted from the rental deposit and first month's rent in advance.

As regards the letting agent's need to see bank statements etc I agree with the others. They have to make sure that your mother is able to pay for your rent and any repairs if you default at any time during your rental period. It is nothing personal. It is business.

G_M

Before a landlord will accept a tenant, he wants proof
* who the tenant is
* have they got a bad history(credit; bankrupcy etc)
* can they afford the rent (secure employment/income)
* etc

If the above is not satisfactory (as seems to be your case) then the landlord wants a guarantor. But the guarantor must also prove:
* who the guarantor is
* have they got a bad history(credit; bankrupcy etc)
* can they afford the rent (secure employment/income)
* etc

otherwise the guarantor is no better than the tenant!