Being a guarantor

WHAT IS A GUARANTOR AND WHAT ARE THEY RESPONSIBLE FOR?

There are a few scenarios where a landlord will ask for a guarantor. It could be because:
You are a student – you will have little or no income from regular employment and will probably be relying on student loans. Parents/ grandparents will most likely be a guarantor in this case.
You have a low credit score – if you have little or no borrowing history or have only had a bank account for a short time you will not have a very good credit score.
Your income is low or you are unemployed - if you don’t earn very much or you receive Universal Credit a guarantor will be required in case you get into financial difficulty.

WHAT’S THE PROCESS TO BECOME A GUARANTOR?

If a tenancy agreement requires a guarantor then a section of the agreement will need to be filled in and signed by the guarantor and the landlord.
The guarantee document will make clear whether the guarantor is liable for just rent or any other costs, the dates of the tenancy and the amount of rent expected.

Additional checks will be required such as:
Proof of UK citizenship
Proof of being a resident UK home owner
Additional affordability criteria

WHEN DO THE RESPONSIBILITIES OF THE GUARANTOR END?

The guarantor’s liability comes to an end when the tenancy ends. If the tenant’s contract doesn’t have a specific end date agreed it will be when:
The tenant serves notice and the agreed end date.
By mutual agreement by the landlord and the tenant to decide on an end date
If there is a court repossession order

DOES THE GUARANTOR NEED TO LIVE IN THE UK?

Yes, this is so that a credit check can be carried out, as each nation has their own checks and systems, and they cannot be transferred.
If you are an international student and can’t get a guarantor, you would be required to pay all of the rent in advance. Alternatively international students can also use company guarantors which can be recommended by the letting agent.

WHAT ARE THE RISKS FOR A GUARANTOR?

Acting as a guarantor for someone is a big responsibility. You’ll want to have a good personal relationship with the tenant and understand their financial situation pretty well to know how much of a risk you are taking. 
It is vitally important that a guarantor reads the contract thoroughly to understand whether the tenancy is individual tenancy – so they are only liable for that person’s rent, or a joint and several tenancy – where one guarantor could be responsible for other tenants in the house not paying their rent.
As a guarantor you’ll want to make sure your own finances are in a strong and stable position should the landlord or court ever be required to ask you for the monies owed.