Will I need a Guarantor? Yes – if
a. You are a Student or unemployed
b. You are in receipt of Housing Benefit. A pre-tenancy determination which is equal to at least 85% of the rental figure will be required by Housing Officer.
c. You have not been working in continuous full-time employment for at least six months for a current or previous employer. NB Continuous means: without a break of more than 14 days during the previous six month period. Full-time means: a minimum of 30 hours per week.
d. Your rental commitment is more than 40% of your annual income.
e. You have recently arrived from overseas to take up employment
f. You have an adverse credit history.
g. Unless there is a legally enforceable guarantee, there will be no legal grounds to pursue the guarantor if the tenant defaults (this could invalidate an insurance claim for Rent Guarantee or Legal Expenses).
Who can be my Guarantor?
To be an acceptable Guarantor an individual must:
Be a U.K. or I.O.M. resident (NOTE: Residents of the Channel Islands, Eire and foreign residents ARE NOT ACCEPTABLE)
Have an acceptable Tenancy Application Score
Have a good credit history with no Bankruptcy, IVAs, County Court Judgments or Court Decrees (Scotland)
Have a monthly income of at least 2 x the monthly rent in order to cover personal out-goings and the rent.
If the Guarantor does not have a regular monthly income, you will need to supply proof of financial strength by providing copies of bank or building society statements demonstrating that the account has, for a period of not less than six months preceding the application, maintained a credit balance in excess of the following example: Sufficient funds must be available to cover the full rental period, equal to 3 x the rent due for the period of the tenancy. (e.g. Rent £500 for a 6 month tenancy = £3000 x 3 multiple = £9,000 of accessible funds available from the guarantor)