How do you decide when to ask for a guarantor?

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    How do you decide when to ask for a guarantor?

    Hi,

    I'm a tenant, I've previously been on a year of an AST tenancy with no late rent payments (and no guarantor), but now wanted to add my partner to the tenancy (as required by the contract wording), and the landlord has asked for a guarantor now. I would have thought that adding another working person to the lease would have decreased risk anyway, seeing as either of us could be held liable for the rent.

    I'm obviously happy to go through the proper process and add a guarantor (so this isn't a complaint thread!), but was very curious to hear a bit more about how landlords decide these things.

    Thanks for any input!

    #2
    A typical credit check response from a tenant check is something along the lines of Yes, No or Yes with a guarantor.
    And complying with that can be a requirement of rent guarantee insurance.

    I also share your thoughts on being asked for a guarantor now, given that you seem to have a track record of paying the rent and, while two people increase the wear and tear a little, there doesn't seem to be any increase in risk.
    Possibly your combined credit score averages out less than yours as an individual.

    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Originally posted by jpkeates View Post
      A typical credit check response from a tenant check is something along the lines of Yes, No or Yes with a guarantor.
      And complying with that can be a requirement of rent guarantee insurance.

      I also share your thoughts on being asked for a guarantor now, given that you seem to have a track record of paying the rent and, while two people increase the wear and tear a little, there doesn't seem to be any increase in risk.
      Possibly your combined credit score averages out less than yours as an individual.
      That makes sense, thanks! I didn't know about rent guarantee insurance existing - I don't think my partner has ever had any credit (not even a phone contract) so I could see that being a lot of uncertainty for the landlord/the landlords' insurance company.

      Comment


        #4
        Originally posted by TrailingPlants View Post
        I don't think my partner has ever had any credit (not even a phone contract)
        That's (ironically) probably going to show up as a poor credit rating.
        There's often not a lot of detail in the response, so it's impossible to tell if someone's low score is because they've got a poor record with credit or no record.

        There's a useful free way to check your credit score - they'll advertise things to you though.
        https://www.creditkarma.co.uk

        The score that probably matters most is the one from experian, and they may have a free version.


        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Clearscore.com is effectively free Experian, they use Experians data/scores
          Might help shed some light. Same as credit karma, they'll plug credit cards/loans at you instead of asking for a subscription

          Comment


            #6
            The reason for the reference and credit check, which a lot of T's don't understand is that 1. if the property is a BTL it may have restriction on it if it does not meet it's requirements, this is the same for any insurance on the property. 2. There are compliance's on the LL to ensure that right to rent checks are carried out. 3. Renting out to a T from a LL's/LA perspective is to mitigate the risk by the T, now that a new T is moving in, the LL/LA does not know who they are etc, requesting a Guarantor is no reflection on you as a T, but the overall risk to the LL/LA for the 2 of you. 4. Credit checks are done on a individual basis and not combined (even though the tenancy may be a joint tenancy) and an individual score is allocated to that individual.

            Also depending on the relationship with the new T, have you previously lived together? so there are a number of factors which influence the decision to ultimately reduce the risk, due to the pandemic, LL's are more likely to ask for additional security then previously.

            Comment


              #7
              In general (young adult/students excluded) if you need a guarantor you don't want the tenant. Guarantors only help for a limited period, but the inclinations of tenants lasts longer.

              Comment


                #8
                Thanks for the feedback and the interesting comments! Turns out that, in this case, the Landlord made a mistake and was somehow referencing for the wrong rent amount, so it came to over 50% of my partner's income and a guarantor was required by their policies. That's all sorted and we got a new AST signed now!

                Unfortunately the landlord has decided he wants to cancel the new AST that we just signed in order to add another 4 months onto the minimum contract term. I'm not totally convinced that's legal (everyone signed the old one...), so looks like we're going to have yet more fun with the renting experience.

                Anyway, thanks again for the insights! Helped clear up my curiosity.

                Comment


                  #9
                  Originally posted by TrailingPlants View Post
                  Unfortunately the landlord has decided he wants to cancel the new AST that we just signed in order to add another 4 months onto the minimum contract term. I'm not totally convinced that's legal (everyone signed the old one...), so looks like we're going to have yet more fun with the renting experience.
                  The landlord can't cancel a valid contract without your agreement.


                  When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                  Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                  Comment

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