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Sep, 2014

Friday

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  1. #1

    Default Problem Finding Guarantor!!!

    Please could someone give me some advice!!!!

    im 22 yrs old and in the process of trying to rent a private flat for the first time. The application has came back from the estate agents saying they require a financial guarantor, as for some reason unbeknown to me my credit score was just below the criteria. (i am going to see why when this is over!!!) The references from my boss and everything else was fine, stating my current earnings of £22,000+ per annum, and as the rent is £450pcm, well within my budget. The problem is the only guarantor i can get, or would feel comfortable asking is my mum, who i know has a poor credit scoring, but also earns half my annual earnings, roughly £13,000 per annum. Surely there must be another way so i dont miss out on getting my own place?????

    any help or suggestions greatly appreciated!!!!!!!!!!!!!!!!!!!

  2. #2
    Join Date
    Jan 2007
    Location
    Oldham Nr Manchester
    Posts
    680

    Thumbs down Tough one

    Quote Originally Posted by pitman4u View Post
    Please could someone give me some advice!!!!

    im 22 yrs old and in the process of trying to rent a private flat for the first time. The application has came back from the estate agents saying they require a financial guarantor, as for some reason unbeknown to me my credit score was just below the criteria. (i am going to see why when this is over!!!) The references from my boss and everything else was fine, stating my current earnings of £22,000+ per annum, and as the rent is £450pcm, well within my budget. The problem is the only guarantor i can get, or would feel comfortable asking is my mum, who i know has a poor credit scoring, but also earns half my annual earnings, roughly £13,000 per annum. Surely there must be another way so i dont miss out on getting my own place?????

    any help or suggestions greatly appreciated!!!!!!!!!!!!!!!!!!!


    Pitman, I do not envy your situation. In the event you do not find a guarantor are you not in a position to offer additional rent in advance?

    Also, have a look at this link

    http://www.iguarantee.co.uk/

    it may not be of much use to you right at the moment but might be useful in a couple of weeks if you are still not sorted.

    Good luck

    Kind Regards

    J

  3. #3
    Join Date
    Jan 2005
    Posts
    5,052

    Default

    Quote Originally Posted by pitman4u View Post
    The application has came back from the estate agents saying they require a financial guarantor, as for some reason unbeknown to me my credit score was just below the criteria. (i am going to see why when this is over!!!) The references from my boss and everything else was fine, stating my current earnings of £22,000+ per annum, and as the rent is £450pcm, well within my budget. The problem is the only guarantor i can get, or would feel comfortable asking is my mum, who i know has a poor credit scoring, but also earns half my annual earnings, roughly £13,000 per annum.
    Maybe you should ask them now why your credit score was poor, if you don't know - it's not impossible that it's incorrect for some reason. Or maybe this agent has an unusually high 'points' threshold below which a guarantor is needed? Other reasons might be that you haven't got yourself on the electoral roll for any length of time; maybe (rather perversely) you haven't applied for credit before (eg credit cards) which reduces your creditworthiness.

    You might find youd be better off renting direct from a landlord, ie not going to an agent at all. Individual landlords are much less likely than agents to have a rigorously enforced 'points' threshold - personally I get the credit check done and consider the result alongside all the other information I have - ie, salary, employment security, references, ID checks etc - and make a judgement accordingly as to whether the applicant (a) is suitable potential tenant and (b) would require a guarantor. If you were coming to me, then your age/salary/level of rent would not suggest to me that a guarantor was required, unless there were hidden nasties in your credit history. An agent on the other hand is much more likely to just have a list of boxes to tick, which might include a credit score above yours.

    By the way, in case you were thinking of trying her for size, your mum wouldn't be likely to be an acceptable guarantor anyway - as you've probably sussed.

  4. #4

    Default

    Thanks i will just have to wait to find out the decision this week. Yeah i have thought about offering additional rent in advance, and its something i will suggest if my application is declined. Im going to request my credit report aswell to see where the problem is. i have had loans and credit cards without problems that have all been paid off, so its a bit annoying!!!!
    fingers crossed!!!!!!!!!!!!

  5. #5
    Join Date
    Jan 2007
    Location
    Oldham Nr Manchester
    Posts
    680

    Default

    Quote Originally Posted by pitman4u View Post
    Thanks i will just have to wait to find out the decision this week. Yeah i have thought about offering additional rent in advance, and its something i will suggest if my application is declined. Im going to request my credit report aswell to see where the problem is. i have had loans and credit cards without problems that have all been paid off, so its a bit annoying!!!!
    fingers crossed!!!!!!!!!!!!

    Good Luck with it pitman.

    J

  6. #6
    Join Date
    Jan 2006
    Posts
    1,419

    Default

    I had a young fella with superb references and guarantor.

    Unfortunately he lost his job. Housing Benefit was only paid for a short time and then because he was under 25 the Housing Benefit paid was for a single room and not a flat.

    I would be very wary about taking on a young person not entitled to Housing Benefit as a fallback situation.

    If a substantial rent in advance was paid I would reconsider my position.
    Vic - wicked landlord
    Any advice or suggestions given in my posts are intended for guidance only and not a substitute for completing full searches on this forum, having regard to the advice of others, or seeking appropriate professional opinion.
    Without Plain English Codes of Practice and easy to complete Prescribed Forms the current law is too complex and is thus neither fair to good tenants nor good landlords.

  7. #7

    Default

    ok thanks i will put the offer of maybe a few months advanced rent to the estate agent if my application gets declined, as this wouldnt be a problem. Job security also isnt a problem in the industry i work in as im currently on an apprenticeship scheme with 2 yrs left, and fortunately with earnings only increasing. Which makes the situation all the more frustrating!!!
    thanks again

  8. #8
    Join Date
    Mar 2007
    Location
    South Wales
    Posts
    161

    Thumbs up Lateral thinking

    pitman4u

    Most landlords are very wary because once you're in you have a lot of rights. They need to know that you can afford to rent in the first place. As a rule we only take on younger people if there are two of them sharing the costs. You have to remember that your rent is only the half of it - literally. It helps if your parents go along when you are viewing properties.

    Just an example of a fellow lateral thinker: a young lady came to me who couldn't be referenced for some reason. She wanted the place desparately (not usually a good sign) for 6 months only. She asked if I would take her if she paid it all up front. I said yes please.

    I found out later that she took it from her credit cards and surfed them for the whole period, paying them of by the equivalent of the monthly rent. It is more difficult to do this now but it worked for her.

    It has also been mentioned here to do this privately; no agency fees and a good chance of no checks either.

    Good luck

    rewop

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