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Being a Guarantor
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Marvel1
Posts: 7,439 Forumite
I was just asked by my cousin to be his guarantor for a rental property. Reason being his credit history was not good enough due to the past, but now has a job, and as his and his GF are both paying £400 each rent on their current properties, they are moving in together and the rent is £550.
Spur of the moment I said yes! Without really thinking it through. Is it possible to be only the guarantor for the 1st 12 months fixed term? (I don't mind that) but I don't fancy being on it for years to come.
Spur of the moment I said yes! Without really thinking it through. Is it possible to be only the guarantor for the 1st 12 months fixed term? (I don't mind that) but I don't fancy being on it for years to come.
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Cousin...no. Son or daughter maybe. Mother or father maybe but not cousin.
A guarantor guarantees not only the rent but also the cost of the landlord actions in regaining possession of the property and the cost of any damage caused to the property.
You can try and limit your guarantee to 12 months but I'm sure the letting agency or landlord wouldn't then offer the tenancy to the tenant.
If the tenant is offered to stay on in the property on a new fixed term tenancy agreement on different terms such as higher rent your guarantee ends then.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Sorry to say this but never ever be a guarantor for someone unless you are prepared to take the consequences.0
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I just said to him and said after thinking about it, I don't think I can do it.
It's not that I don't trust them, you never know what the future holds, could be ill etc and only risk I want is my mortgage (on my own).0 -
I would not do it - supposing they split up, are you willing to cover the partners share of the rent or even all of it.
The reason they are asking for a guarantor is that they are deemed to be risky tenants... and that risk could pass to you.0 -
If the Queen rang me up and asked me to be a Guarantor for her, I would refuse.
That's how dicey being a Guarantor is.
Ring your cousin and tell him you have changed your mind.
As has been said above, the reason they need a Guarantor is because they have a iffy credit record. You could realistically find yourself £6k+ out of pocket if he decides not to pay up, or they split up, etc, etc."There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock0 -
TBH...If you have any doubts,then the answer must be no.
I personally would probably act as guarantor to my children should they need it but thats as far as my generosity would allow and then only in the case that they had been unable to get credit because of little or no history rather than a default in the past.
How well do you know your cousin and why is he asking you,potentially because others closer to him have said no.
I'm also a LL and have one set of tenants who have parental guarantors,so its not that I am against the concept of it but I think you really have to look into it more than just saying yes on the spur of the moment.frugal October...£41.82 of £40 food shopping spend for the 2 of us!
2017 toiletries challenge 179 out 145 in ...£18.64 spend0 -
How well do you know your cousin and why is he asking you,potentially because others closer to him have said no.
We are like brothers, close, his parents cannot as they do not work, and I have a decent credit record if checked.
The more I think of it, I'm a firm believer in standing on your own 2 feet and should not ask people for help money wise (be it parents as gift for a deposit) and likewise a gurantor is just that.0 -
I just said to him and said after thinking about it, I don't think I can do it.
It's not that I don't trust them, you never know what the future holds, could be ill etc and only risk I want is my mortgage (on my own).
Excellent move, never be a guarantor to anyone - ever."Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety". - Benjamin Franklin0 -
Lots of good advice above, highlighting the risks, possible means to restrict the time limit (and potential consequences ie no tenancy!) but
at the end of the day it depends
* if you can afford the worst case costs
* if you are willing to pay the worst case costs
* if you feel close enough (relationship-wise) to want to help cousin
* if you trust cousin
* if you trust cousin's partner (you'll be guaranteeing him/her too)0 -
There's some useful information on guarantor responsibilities here: http://housingrights.org.uk/news/guarantors-northern-ireland-what-you-need-know0
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