Financial Predicament: "I'm faced with a dilemma: my brother-in-law needs to exit a contract, yet I'm hesitant to assume his responsibilities as a guarantor."
In a recent turn of events, DeJb finds himself in a predicament as his brother-in-law, who is seeking to rent a property, needs a guarantor but DeJb is unable to fulfil this role. However, there are several alternatives DeJb can consider to help his brother-in-law secure a rental property without putting his own financial commitments at risk.
One such alternative is professional rent guarantor services. Companies like Housing Hand or UK Guarantor offer to act as a guarantor for tenants, providing landlords with financial security without the need for a personal guarantor. These services typically require a fee, but they can be a valuable solution for those unable to find a personal guarantor.
Another option is to pay rent upfront. Some landlords may accept a larger upfront payment of rent to reduce their risk, such as paying several months' rent in advance. Offering a larger deposit than the standard requirement can also reassure landlords, potentially allowing them to waive the need for a guarantor.
For international students, many universities offer accommodation options that do not require a guarantor, as the university acts as the guarantor. Additionally, some insurance-based alternatives can cover rent payments if a tenant is unable to pay, acting as an alternative to a traditional guarantor.
In rare cases, an employer might agree to act as a guarantor, especially for employees relocating or on probation. However, this is not common and depends on the employer's policies.
Speaking directly with the landlord is recommended to explore these options and determine what they might accept as an alternative to a personal guarantor. It's also advisable to shop around for the right lender to meet your requirements, considering the potential impact of being a guarantor.
Megan Harwood-Baynes, a cost of living specialist, advises that if no one is willing to overlook the need for a guarantor, a lodger-type agreement with a resident landlord could be pursued, as they are often more flexible and don't require a guarantor. Additionally, some local councils offer rent deposit or guarantee schemes.
If DeJb's brother-in-law is a student, there may be university guarantor schemes available. Moreover, private guarantor companies typically do not credit check a co-signer, allowing someone who may not have been eligible to be a guarantor to be accepted. In such a case, his brother-in-law could ask another family member to be a co-signer for a private guarantor scheme.
It's essential to note that this information is not intended as financial advice, but rather an overview of things to consider. Lenders may factor in potential guarantor arrangements when calculating mortgage affordability, which could affect the amount they offer. Furthermore, some lenders may ask about guarantor arrangements to understand potential future liabilities.
DeJb's brother-in-law has been staying with him for nine months after becoming homeless. This article aims to provide DeJb with a range of alternatives to being a guarantor, ensuring his brother-in-law can find a suitable rental property without putting DeJb's financial stability at risk.
In the quest to find an alternative to being a personal guarantor, DeJb could consider professional rent guarantor services like Housing Hand or UK Guarantor. Alternatively, offering to pay rent upfront, such as several months in advance, might convince landlords to waive the need for a guarantor.
