How to secure a UK guarantor checklist

Checklists

Checklist provided by 

www.housinghand.co.uk

Why we work with Housing Hand

 

 
 

When renting property, a landlord or letting agent may insist on a rent guarantor, who pledges to pay the rent if the tenant cannot. In some cases – such as a joint and several contract – the guarantor will also be liable for the rent of the other tenants in the property and for any damages or dilapidations caused.

A guarantor must:

  • Be a UK resident aged 18-75

  • Have a good credit history

  • Agree to pay the rent if the tenant cannot

  • In some cases, agree to pay for any damage caused by the tenant, if the tenant cannot

  • In some cases, agree to be liable for all tenants’ rent

  • Pass the same referencing checks as the tenant

You may not be able to find a suitable guarantor if:

  • You are a foreign national working or studying in the UK and your family are abroad

  • Your parents or family are not financially secure enough to act

  • You do not have anyone who wants to accept the financial liability

  • You have no family

 

In this situation, your options are:

  • Pay six or 12 months’ rent up front Offer to pay for a rent guarantee and legal expenses insurance policy for your landlord

  • Use a guarantor service such as Housing Hand, which guarantees your rent will be paid throughout the tenancy. This service costs from £295 for 12 months’ cover and can be paid in installments

 

To use a guarantor service, you must complete the service’s application form. It’s free to apply and you will receive a quote based on your monthly rent and employment status.

 

Students need to supply photo ID, a proof of National Insurance number (if a UK resident) and proof of study, such as an acceptance letter or student ID card

 

Working professionals need to supply photo ID, a proof of National Insurance number (if a UK resident) and evidence that they earn 1.5x the monthly rent. This can be one of the following:

  • Three months’ bank statements

  • A monthly payslip or four weekly payslips

  • If you have not started the job yet, a copy of the working contract, letter from employer or job offer on headed paper can be accepted.

Find a property you want to rent - either by your own means or by using Housing Hand’s Free House Finder Service

Pass the details on to Housing Hand so they can check if they have worked with the landlord/letting agent before. If they have not, Housing Hand have a dedicated introductions team to explain their service or they have a Free House Finder Service to help you find alternative accommodation

Appoint a co-signer – this can be a non-UK resident and their credit history is irrelevant, as long as they do not live in the same property and are not a student. The co-signer is a second point of contact if the tenant defaults on their rent and can become liable for any rent if you fail to meet your payments and cannot meet Housing Hand’s repayment plan. A co-signer must provide:

  • Photo ID

  • Proof of residential address dated within the last three months

  • NI number (UK-based co-signers only)

Pay your fee – you can pay this up front or spread the cost over eight monthly payments

You and your co-signer sign the contract – this is done online

Your guarantor service will then sign the contract and sort everything else out with your accommodation provider, so you can relax and move in.

 


All our information is brought to you by Kate Faulkner, author of
Which? Property books and one of the UK's top property experts.
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