When renting in the United Kingdom, often you will be required to provide a UK Rent Guarantor. But what is a Rent Guarantor? Put simply, this is a person who is prepared to be responsible for your rent, should you default on a payment. The term may seem daunting, but we’ve pulled together all of the important details and information that you need, and how Housing Hand can help if you are unable to provide a UK Guarantor.
What does being a Rent Guarantor mean?
A UK Guarantor, generally speaking, is someone liable for a loan that has been taken out. This means that they are responsible for covering your rent if you are unable to pay. Occasionally they will also agree to cover damages to the property, but this will be decided in the contract. To find out more about what a Rent Guarantor is, Housing Hand’s knowledge base has more information, click the link here or go to our FAQ’s page.
Why is a Rent Guarantor needed?
Understandably, when you are requested to provide a Rent Guarantor it can feel like there is a lack of trust, however, this is an extremely common process. Many landlords insist on a Rent Guarantor when a property is being applied for. A Guarantor ensures that a tenant will not default on their rent and that all property damage costings will be covered.
Common examples of when a Rent Guarantor may be needed include:
• If this is your first time privately renting
• You’ve been living in a different country
• You are a student
• You were temporarily unemployed or don’t have a steady income.
However, occasionally all of the above criteria may be met, and a landlord still may request a Rent Guarantor for peace of mind.
Who can be a Guarantor?
Sometimes, it can be difficult to secure yourself a UK Rent Guarantor, especially when you’re already going through the process and stress of relocating. This is because there are a few requirements that a Guarantor must meet, we have listed them below:
A Rent Guarantor must:
• Be between the ages of 18-75
• Have a good credit history
• Be able to pay your monthly rent (may have to earn a certain amount per annum)
• Be a UK resident
• Be able to provide evidence of all of the above
It can be difficult to find a UK Rent Guarantor that meets all of the criteria above, and if your intended Guarantor fails on any one of these they will not qualify as suitable. If you find yourself in this situation, not to worry, as this is why Housing Hand is here to help – find out more below.
Guarantor liability and concerns
If you’re moving into shared housing, you must understand what a joint and several liability contract is. Our sister company Only My Share is here to give you more information in protecting yourself and your Guarantor from having to pay your housemates rent should they default on a payment. Find out more here.
What can you do if you are unable to provide a Rent Guarantor?
In some situations, it is often impossible to find a suitable Guarantor. This may be because you’re living overseas and don’t have a UK contact or are even struggling to find someone willing to take on that level of responsibility. Consequently, failure to provide a Guarantor can mean that landlords request up to 6-12 months of rent. This can be extremely challenging, and a massive added cost to re-locating.
Not to worry, Housing Hand is here to help should you find yourself in this situation. Our affordable and reliable service offers a solution to helping students and working professionals secure a rental property.
Some of the benefits of using Housing Hand include:
• Easily securing a rental property
• Paying rent in smaller instalments and not needing to pay a deposit
• Reducing the risk of signing up a Guarantor to legal liabilities
• Providing security to the landlord
Our service allows you to pay monthly, and protects you financially should your rental home be repossessed, damaged or any kind of emergency that means you need to leave the property.
To find out if you can use our service, follow this link and fill in a short online form online and have your answer in a matter of minutes. Otherwise, for more information visit our knowledge base.
