Guarantor fro rental and mortgage

Louscorp

I am currently a guarantor for my nephew's mortgage. A close friend of mine requires a guarantor for a rental. Am I permitted to do this taking to account I am a mortgage guarantor already? 

SpiderLegs

Yes you are permitted.
However you would be insane to do so.

theartfullodger

I'd start be getting out of the mortgage guarantee: It's basically a black cheque for nephew & mortgage company.  There's no way I sign one even for my sons!  

The question is a bit, IMHO, like asking is it permitted to try high-wire tight-rope walking with no training and a blindfold: Well, yes it is permitted, but why would any do it??

MaryNB

If you do proceed with being a guarantor for a rental, make sure you understand what you are signing up for. It's not just for the initial 6-12 months. You'll more than likely remain a guarantor after it becomes a period tenancy or if the tenancy agreement is renewed. Your obligation only ends when the tenancy ends and your friend moves out. 

Louscorp

Thanks, just needed to know if permitted. Question answered, thank you.

Gilbo

One thing not mentioned here is that being a guarantor you could be impacting your own ability to have a mortgage.

I was asked to be a guarantor for my nieces at the same time as negotiating a mortgage. The mortgage company said they treated the guaranteed amount as if it was an actual outgoing, so impacted the amount I could borrow.