Guarantor question?

Sabrina2000

Hi all, I will be moving soon, I have been on maternity leave for almost the full term, it will be ending soon. I'm both employed and self employed, so no income from SE last 9 months or because I've been nursing my baby.

Will I need a guarantor because my income has been lower than normal for the last 9months, but will go back to full amount once I start back to full time?

Would an OAP do as a guarantor? If they also have a clean credit history as I do but not much in the way of savings?

kingstreet

Rental or purchase?

Sabrina2000

Rental, I just want to satisfy the agent.

wiltsguy_2

anyone who has a good level of credit can be a guarantor as fas as im aware, as that's who they chase for any non payment/arrears, i don't think age matters in this day and age.

Sabrina2000

Thanks so much, put my mind at rest.

eddddy

Ask the EA what their criteria is for a guarantor, and what evidence they need.

One I dealt with recently said the guarantor's income must be at least twice the rent being guaranteed. They asked for 3 months bank statements from the guarantor (to confirm the income, and possibly to look at outgoings as well). Plus an employer reference.

But I'm pretty sure this particular EA didn't do any kind of credit check on the guarantor.

As you explain, the EA might look for a guarantor because your income is insufficient. So if the pensioner's income is also low, that may not help.

But some EAs are not very thorough about this kind of thing (but the LL may be).

Sabrina2000

I did ask and they told me verbally as long as the guarantor has good credit history this is enough.

nonnatus

Usually, they want a "home owning" Guarantor - which normally translates as a parent or older relative who has enough equity in their own property to be able to cover any amount of unpaid rent that you might be liable for...

eddddy

Sabrina2000 wrote: »

I did ask and they told me verbally as long as the guarantor has good credit history this is enough.

Yes - as I say, some agents aren't very thorough.

There can be a bit of a conflict of interest. The agent may be keen to accept almost any tenant and almost any guarantor, because it gets them their finder's fee.

Some landlords may then veto the tenant/guarantor, but others may not be taking too much interest.


But don't forget that if the worst happens (e.g. you lose your job; have an accident and can't work etc) and you can't pay your rent, the landlord could end up taking the pensioner to court to get your rent money.

eddddy

nonnatus wrote: »

Usually, they want a "home owning" Guarantor - which normally translates as a parent or older relative who has enough equity in their own property to be able to cover any amount of unpaid rent that you might be liable for...

Hmmm - that implies that the LL would need to force the guarantor to sell their house to get their unpaid rent. That isn't really practical.

It's probably more a like a rough 'rule of thumb' : if somebody owns a house, they're probably better off than somebody who doesn't.

Sabrina2000

All they wanted was my parents passports, then name address and phone number. They didnt ask about property ownership or savings, maybe that will come later?