I'm a rent guarantor, will that ruin my chances of getting a mortgage??

Amie0511

I'm in the process of getting a mortgage but I'm the rent guarantor for 2 different people and am now worried that this will affect me...neither have ever defaulted on their rent so it's never been a problem for me!

somethingcorporate

It's never a problem until it becomes a problem.

You could in effect be forced to pay for 3 houses at once when you only get the benefit from 1. I suggest you speak to the lender to see what they think, it may be fine!

Amie0511

Thanks for reply...I'm aware that it could be bad news if they don't pay up but right now I'm more concerned about being refused the right the buy a home for my own family all because I've kindly helped others get a roof over their heads!!

ScorpiondeRooftrouser

Amie0511 wrote: »

Thanks for reply...I'm aware that it could be bad news if they don't pay up but right now I'm more concerned about being refused the right the buy a home for my own family all because I've kindly helped others get a roof over their heads!!

Well, that's the thing isn't it. If there weren't negative consequences to being a guarantor, then it wouldn't be a helpful thing to do. Complaining about it is like saying "I haven't got money to buy myself a coffee because I gave my spare change to a beggar."

mrginge

You have no right to buy a home.
You made some choices to help others to the detriment of yourself.

You do however realise that you probably have no way to remove yourself from these agreements dont you?

Perhaps asking this specific q on the mortgages board will get a better response from one of the brokers.

Amie0511

Thanks il try that

silvercar

Interesting post. Most parents with offspring at university end up guaranteeing the offsprings rent, I have done so for the last 7 years, yet in any financial dealings I don't recall being asked this question. I thought the presumption was if push came to shove you would prioritise paying your own mortgage over and above paying your guarantor liabilities. Therefore as it is further down the pecking order a lender wouldn't be interested.

Argghhh

they could however send the bailiffs to your house to recover their missed payments

HappyMJ

Amie0511 wrote: »

I'm in the process of getting a mortgage but I'm the rent guarantor for 2 different people and am now worried that this will affect me...neither have ever defaulted on their rent so it's never been a problem for me!

Amie0511 wrote: »

Thanks for reply...I'm aware that it could be bad news if they don't pay up but right now I'm more concerned about being refused the right the buy a home for my own family all because I've kindly helped others get a roof over their heads!!

Are the tenants you've guaranteed rent for out of their fixed terms? You can stop being a guarantor for them once the fixed term is over. You can write to the landlord and opt out of the agreement. The landlord could issue a Section 21 notice to tenant and as the lease will end your responsibility ends. The landlord may accept the tenants have paid on time and no longer require a guarantor and may release you from your obligation.

mrginge

silvercar wrote: »

Interesting post. Most parents with offspring at university end up guaranteeing the offsprings rent, I have done so for the last 7 years, yet in any financial dealings I don't recall being asked this question. I thought the presumption was if push came to shove you would prioritise paying your own mortgage over and above paying your guarantor liabilities. Therefore as it is further down the pecking order a lender wouldn't be interested.

would you apply that same logic to a lender's approach to credit card debt?

mrginge

HappyMJ wrote: »

Are the tenants you've guaranteed rent for out of their fixed terms? You can stop being a guarantor for them once the fixed term is over. You can write to the landlord and opt out of the agreement. The landlord could issue a Section 21 notice to tenant and as the lease will end your responsibility ends. The landlord may accept the tenants have paid on time and no longer require a guarantor and may release you from your obligation.

No you cant