Being a Rent guarantor for someone with an IVA

lenka89

Hello,

I have been asked to be a rent guarantor for a close family member who has an IVA. They are very good with paying their rent where they live currently but need to move to a different property. I don’t mind being their guarantor however I am planning to purchase a property myself in couple years time after renting.  Will this affect my mortgage application? If the person has an IVA and I’m their guarantor? Even if they up keep with their monthly rent and always pay on time.

please advice, thank you

foxy-stoat

As long as you can pass the affordability for your new mortgage assuming you are having to pay their rent indefinitely and when/if they leave you can foot the bill for any repairs then shouldn't be a problem.

Personally I wouldn't put my financial head in a noose this way.

mwarby

You might find that after a couple of years of paying the rent on time that the landlord would be ok entering into a new agreement without you as guarantor, although of course if that didnt pan out it could be ackward

I belive some councils offer rent guarantee schemes for some, perhaps worth looking into.

Also depending on the rental market in the area it maybe worth negoating with landlord, if there arent etnnant lining up, maybe a larger deposit would offset the risk, or maybe theres another landlord who would take on the risk

liggerz87

Id say dont do it becuse if family member don't pay you'll have to

nyermen

Are they willing to consider an alternative option such as 6 months rent upfront?  Or indeed, the council option.  

The responses here are "no no no" to guarantors because of all the stories of "closest family member did XYZ can't believe it etc".  Loss of job, bad situation, and they simply can't pay. Then they can't move out as they have no where else, and you become liable right through to any final eviction including costs (Don't think, oh that's a bit too much, because it can be forced - eg. by the council - to remain in the property until bailiffs arrive or its considered intentional homelessness).

rachel6188

lenka89 said:

Hello,

I have been asked to be a rent guarantor for a close family member who has an IVA. They are very good with paying their rent where they live currently but need to move to a different property. I don’t mind being their guarantor however I am planning to purchase a property myself in couple years time after renting.  Will this affect my mortgage application? If the person has an IVA and I’m their guarantor? Even if they up keep with their monthly rent and always pay on time.

please advice, thank you

I have to say we have a DRO and we had the oh mum being our guarantor and she had no issues with it we actually were nearly 300 in credit when it came to leaving as we weren't 100% sure of what we owed so paid. If it was me I would consider it x