Does a guarantor have to be a home owner?

Does a guarantor have to be a home owner?

Dear Samii

Does a guarantor have to be a home owner?

Samii says

No, in theory they could be renting their home. However they must be financially sound to support the tenant should anything
go wrong, so they should be referenced in the same way as the applicant.

There are two types of guarantor that DAS will accept for Rent Guarantee Insurance:

1. When the applicant tenant can afford the rent, or has a settled CCJ (basically has a bad credit score) and therefore needs extra security in the form of a financially sound guarantor.

2. When the applicant tenant has a good credit score but cannot afford the whole rent and needs a subsidence from their guarantor;
e.g. students.

Did you know you can reference a tenant and their guarantor for just £60 at Tenant Referencing UK? Click here for full information.

Have you got a tenant referencing question?
Then simply email samii@landlordreferencing.co.uk and it may feature here, helping other landlords and letting agents with the same query in the future.

Not an LRS member? Click here to join now and gain exclusive access to the only real-time referencing database in the UK, alongside 25,000+ fellow landlords.

Author: SamiiB-P

Senior PR Officer at TenantReferencingUK.com & Admin at NLCEuk.co.uk . Any queries email me at: samii.boydprice@nlceuk.co.uk / samii@landlordreferencing.co.uk or give me a call on: 0800 9994 994 (option 6).

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