Guarantor for Brothers rental flat

shell88

Hi,

My brother has asked me to be a guarantor for his new flat that he will be renting as he has bad credit. Obviously I want to help him out but I was just curious how it would affect my credit file? Ive just got myself in a much better position credit wise and got a mortgage 6 months ago. We will be remortgaging next year when the intital period is up, will me being a guarantor affect this?

Thanks!

Sea_Shell

Before you agree to this, you have to ask WHY does he have bad credit. You will be taking the risk that you will end up paying his rent if he doesn't. Can you realistically afford to pay his rent, on top of your Mortgage?

I know you want to help, but you really would be putting your own financial security at risk by doing this.

My advise would be Don't!!!

anselld

No impact on credit file as it is not recorded. (Unless brother leaches so much money you cannot afford your own bills or you end up with CCJ.)

[Deleted User]

I agree with the above post. Unless you are absolutely certain your brother has sorted his financial management out and he won't revert/continue with old ways, do not guarantee his rent. How would you pay his rent if he didn't? This is what you are agreeing to do for the duration of his tenancy. Just tell him you can't take the risk of having to pay his rent because you can't manage your mortgage and his rent. And stand firm.

I'd advise him to rent a room, pay his debts off and then you'll see.

f he doesn't have any CCJ's or an IVA his debt problems won't show up. If he does, he will require a guarantor, stay where he is or rent an inexpensive room to enable him to pay debts off asap, or save up six months rent and see if he can get a LL to accept him with that in place. Most of those things would actually help him resolve his problems (except a guarantor).

19lottie82

The ultimate question is can you afford (and are you willing) to pay your brothers rent, indefinitely, if he decides not to? If no then DONT DO IT.

csgohan4

Money and family should never mix, it can go bad


Can't Pay we take it away is a prime example. If your brother can't pay who do you think the bailiffs will come after next?


Politely mention you cannot afford to pay for your brother rent if anything goes wrong.


If he tries to emotionally blackmail you, then you know his true colours and what he really sees you are to him

moneyistooshorttomention

Sea_Shell wrote: »

Before you agree to this, you have to ask WHY does he have bad credit. You will be taking the risk that you will end up paying his rent if he doesn't. Can you realistically afford to pay his rent, on top of your Mortgage?

I know you want to help, but you really would be putting your own financial security at risk by doing this.

My advise would be Don't!!!

Seconded.

DON'T with bells on.

Ignore the fact he is your brother. Just think of him as someone with a bad credit history.

I bet he's ignoring the fact you are his sister and would feel no special obligation to ensure he doesnt land you in trouble. He's asking you because you are the nearest person to hand (ie not any "special relationship with added obligations" etc thing).

Speaking of which - how come he is even asking you in the first place and not asking your mutual parents if he's going to ask anyone?

EDIT; Not forgetting to ask yourself what your brother has ever done for you. "Giving" is supposed to go both ways - and I'd be willing to bet your brother has never done any "giving" to you. Siblings can be like that - all take and no corresponding give (voice of experience time with my own brother - who has always taken the attitude he'd take anything he can get from me, but there was never anything in return).

Cakeguts

As a guarantor you are signing to say that if your brother doesn't pay the rent you will pay it instead. If he doesn't pay his rent the landlord will ask you to pay it. If you don't pay it you will be taken to court not your brother. Your brother will get away with not paying the rent and you will be forced to pay it. That is what being a guarantor means.

Only do this if you can pay all of your brother's rent and your mortgage.

People think that if they sign to be a guarantor and the tenant renting the house doesn't pay the rent the landlord will go after the tenant and take them to court for non payment of rent. This isn't the case the landlord will go after the guarantor and take them to court instead.

Don't do it.

Marvel1

Can you afford and very happy to pay the rent on his behalf?


Brother doesn't pay, landlord does not have to evict for non payment, as it's you who is paying.

hazyjo

The landlord often won't come to you for the sent immediately either. It way we'll have built up AND be due each month.

I would be inclined to find out the essential criteria of you being a guarantor and stretch the truth if necessary as to which bit you don't meet. Salary? Outgoings? Or say you're considering borrowing more next year and can't risk it affecting that.

teddysmum

I would be very reluctant as there are many, many cases where family are taken advantage of because, unlike the 'evil' landlord or loan company , it's felt they won't be so hard on a 'poor' relative.


Does someone not have to qualify on asset, income and other liability grounds (eg mortgage or loan) in order to be a guarantor ? After all there is no point in accepting Bill, who lives in rented accommodation and is on benefits.