A guarantor is usually a family member over the age of 18, who is in a strong financial situation. When a person agrees to become a guarantor, they will be responsible for paying the rent, if the tenant isn’t able to pay. They will also have to pay for any damage to the property. If a guarantor doesn’t cover outstanding rent or damage costs, they could be taken to court.
Why would someone need me to be a guarantor?
It’s most likely one of the reasons below:They’re a borrower with no credit history (e.g. a young person, or someone new to the country) They’ve ju...
Will being a guarantor cost me money? If so, what else could I lose?
Being a guarantor can cost you money if the borrower can’t keep up their repayments, as you will have to make them instead. If you’re unable to mee...
Will I have to be a guarantor for the duration of their whole mortgage?
You don’t necessarily have to remain a guarantor for the whole mortgage term (e.g. 30 years). Once the borrower has built up enough equity, most ag...
Can I be a guarantor with bad credit?
Guarantors with a bad credit history are not likely to be accepted by lenders so it’s unlikely you’ll be able to act as a guarantor if you have a l...
Will being a guarantor affect me getting a mortgage?
Helping a family member or close friend to secure their credit can affect your future mortgage applications. Mortgage lenders look at every aspect...