What Exactly Is a Guarantor and How to Get One

Renting a property in the UK can be complicated, with requirements becoming stricter by the day. Providing a rent guarantor might be one of those requirements. Our guide addresses what a guarantor is, who can be your guarantor, and how to get one.

What Is a Guarantor?

A guarantor is a third party (individual or company) responsible for making your payments if you fail to do so. The guarantor’s responsibility is to cover all your missed costs, including rent payments and any other expenses that you cannot pay.

A landlord can require a guarantor’s signature on a tenancy agreement as an added form of security to minimise the risk of losing money from their rented property.

The guarantor meaning presupposes that the landlord will receive the money owed. If you don’t pay the rent, the landlord will ask the guarantor to pay. If a guarantor is also unable to pay, the landlord can pursue legal action against them.

Do You Need a Guarantor to Rent?

Many landlords require that new tenants have a guarantor, depending on the tenant’s credit history, current employment status, and income bracket. Guarantors are typically needed when there’s little or no information about the tenant—especially with students or young people who have recently entered the workforce. A landlord may also require a guarantor’s signature if you’re unemployed, a low-income worker, or have a poor credit history. (The same applies to non-UK residents.)

But you won’t need a guarantor for rent if you’re employed and have a steady income, good credit history, and references from previous landlords. Tenant referencing is a common way to determine if someone is a suitable tenant.

Key Takeaways

Who Can Be a Guarantor?

To become a guarantor for renting, you must:

• Be a UK resident: You must be a UK resident because the landlord needs to assess your financial situation and be able to pursue legal action if necessary.
• Be over 18 and under 75: Anyone over 18 and under 75 who has the ability to pay rent is a viable candidate; you don’t need to be a parent or family member.
• Have a good credit history: To be a guarantor for rent in the UK, you must have a good credit history—reassuring landlords that you’re a responsible payer.
• Be able to pay your rent: The guarantor needs to have an income sufficient to cover their own expenses and enough left over to pay your rent if you can’t manage the payments.

A prospective guarantor must meet all of these conditions. If they don’t, landlords will not view them as suitable candidates, and their applications may be rejected.

What Does a Guarantor Need to Provide in the UK?

Since a guarantor is just as liable as a tenant, they must provide documentation proving their identity and outlining their financial situation.

The guarantor needs to provide the following.

• Proof of identity: Passport or a UK driving licence
• Proof of income: Bank statement, wage slips, or pension income
• Credit report (optional): Some landlords may require a copy of the guarantor’s credit report.

These are the primary documents one needs to provide if being a guarantor for rent is what they aim to do. It’s also important to remember that the landlord and letting agent are free to conduct additional checks.

What Checks Are Done on a Guarantor?

Landlords have the right to conduct the same checks on the guarantor as on the prospective tenant. Checks that are typically undertaken on guarantors include:

• Credit checks
• A CCJ check
• History of loan payments
• Employer checks
• Bank statements
• Savings accounts
• Right to Rent checks
• Ownership of property in the UK

Once all of the listed checks are conducted and satisfy the landlord’s criteria, they will accept the guarantor and move on to signing a guarantor’s agreement. But landlords must always ask the guarantor’s permission before conducting any checks.

So what do you need to be a guarantor? Considering all the above requirements, it’s clear that landlords and agents expect a guarantor to be more financially stable than the tenant. And sometimes, the guarantor checks are more extensive than those for tenants.

Does a Guarantor Have to Be a Homeowner?

Depending on the landlord, one doesn’t need to be a homeowner to be accepted as a guarantor. Many landlords and letting agencies, however, have started listing ‘homeownership in the UK’ as a requirement for guarantors. And even if this is not a requirement imposed by the landlord, homeownership can significantly improve your chances of being approved as a guarantor. Fortunately, most landlords and agencies are open to negotiation when choosing guarantors.

How to Get a Guarantor

Considering all the above conditions a guarantor must meet, perhaps you’re wondering how to obtain a guarantor. Before asking someone to be a guarantor, consider the following recommendations.

1. Explain the shared accommodation agreement to the guarantor.
2. Tell the guarantor they must sign a guarantor’s agreement and agree to the terms and conditions.
3. Make sure that the guarantor can fulfil their obligations and liability.
4. Seek rent advice if you or the guarantor are unclear about any aspect of the agreement.

So what is a guarantor in relation to letting? Our guide has addressed who is eligible to become a guarantor and their obligations. You can now proceed with asking someone to become a guarantor for renting a property.

Choose someone you know and trust. The person you choose must be reliable and financially stable. The most common choices for guarantors are parents, close relatives, or a friend willing to help you. If you have trouble finding a suitable candidate for a guarantor, you can turn to one of the rent guarantor companies operating in the UK.

So with the question of what is a guarantor for rent, you can also select a company to take on this role. These companies are the go-to choice for international students who need accommodation in the UK and those who receive benefits.

Conclusion

Being a guarantor is a responsible role. So asking someone to take on this responsibility for you is no small matter. Our guide should help you understand what a guarantor is and who can be a guarantor for renting a property so that you can begin thinking about who to ask to be your guarantor.