Guarantor query for rental property

shannonrodbourn

I can’t seem to find the answer anywhere and estate agents avoid really looking into it. I have been asked to be a guarantor for my sister so she can RENT a flat, no loan or mortgage. I plan on applying for my first ever mortgage in the New Year and need to know if this will affect my application if i agree. The estate agents say it’s just a ‘soft search’ but don’t go into detail (i think they don’t actually know themselves). Does anyone have any idea? I know my sister will keep up with the paymentS and it won’t fall on me but i don’t want to agree if it will show to mortgage providers that i potentially ‘have a debt’ which is the guarantor. Any help appreciated...  

Ebe_Scrooge

We did this a couple for years ago for my son.  Certainly for us they did do a credit check - though we're in Scotland, I don't know if that makes a difference.  Same situation as you, we had no qualms about him not paying his rent, but ultimately you ARE responsible for the rent, and it's therefore classed as a financial liability.  How much effect that would have on a mortgage application I don't know unfortunately - it's a potential debt rather than an active one.  Being hard-hearted, I'd say you're safer not to stand as guarantor in order to give you the best chance of securing your mortgage - but I know you probably want to do whatever you can to help your sister.

This may be worth a read :-  https://www.experian.co.uk/consumer/guides/being-a-guarantor.html

[Deleted User]

I don't know the answer to that but I bet you would need to declare to your potential lender that you have that potential debt every month as it will affect your affordability. This forum is full of stories of families committing fraud against each other, don't think just because she's a sister you're not going to have to pay her bills

sleepyjones

The search would appear on your file (but presumably only you would see it), and as far as I'm aware there is no way to add a marker on your file saying you're a guarantor.  I would say it'll have no affect on a mortgage application, but I'm not an expert in these things.

As well as rent, you'll also be liable for any damage, also probably not an issue but, just so you know.

Get the Guarantor forms and have a read of the terms and conditions, it should tell you more in there.

Yahoo_Mail

shannonrodbourn said:

I can’t seem to find the answer anywhere and estate agents avoid really looking into it. I have been asked to be a guarantor for my sister so she can RENT a flat, no loan or mortgage. I plan on applying for my first ever mortgage in the New Year and need to know if this will affect my application if i agree. The estate agents say it’s just a ‘soft search’ but don’t go into detail (i think they don’t actually know themselves). Does anyone have any idea? I know my sister will keep up with the paymentS and it won’t fall on me but i don’t want to agree if it will show to mortgage providers that i potentially ‘have a debt’ which is the guarantor. Any help appreciated...  

Both her and your checks will be soft searches, letting agencies don't do hard searches.

But please don't think that "she will keep up repayments." That's the same thinking that people who sign up for guarantor loans have.  Assume she won't and budget accordingly.

Oh, and she won't likely get evicted for the best part of a year so bear that in mind too.

MEM62

shannonrodbourn said:

I have been asked to be a guarantor for my sister so she can RENT a flat, no loan or mortgage. I plan on applying for my first ever mortgage in the New Year and need to know if this will affect my application if i agree. 

The first question that you need to ask yourself is whether you can afford your mortgage payments and her rent.  If not, then you are not in a position to stand guarantor.  As for the impact on your application, each lender will have their own view on this.  Be under no illusion that this is a potential financial liability.  With some it may be seen as more of a negative than with others.  Frankly, if you want to ensure that you are in the best position with respect to your mortgage application it would be advisable to refuse your sister's request.