A guarantor is someone who agrees to be responsible for someone else's debt if they are unable to pay, and any adult with good credit can be one.

Are you getting ready to head off to university in September? Well, listen up because there are a few things you should know. Moving into student housing comes with a whole new set of challenges, from choosing your roommates to dealing with rental deposits. As the start of the new term draws near, you'll soon be faced with the task of signing your very first private tenancy agreement. It may seem overwhelming, but don't worry, we've got you covered. One aspect of renting that you may come across is the need for a guarantor. But what exactly is a guarantor and how do you choose one? Let's dive into everything you need to know, as explained by the experts.

According to Liz Hunter, Director at Money Expert, a guarantor is someone who agrees to pay your rent if you are unable to do so yourself - typically a parent or close relative. In other words, they act as a safety net for the landlord in case you are unable to make your rental payments. However, if your guarantor is unable to cover the costs, they could potentially face legal action from the landlord. That's why it's important for your landlord to check your guarantor's ability to pay, usually by conducting a credit check. It's also a legal requirement for the guarantor agreement to be in writing, outlining their legal obligations.

So, why might you need a guarantor? Well, there are a few reasons. Being a student is one of them, but it may also be required if you have a limited or poor credit history, a low income, or if you've moved to the UK from overseas. Additionally, if you can't provide any references from a previous landlord, have existing debts or have been declared bankrupt, a guarantor may be necessary.

Now, who can be a guarantor? The answer is anyone, although some landlords may prefer them to be UK-based in case they need to appear in court. Typically, landlords prefer guarantors who are homeowners and have a stable income. They must also be over the age of 18 and in a strong financial position. While guarantors are usually close family members or friends, technically anyone you know can be a guarantor. Just keep in mind that landlords and estate agents will usually require your guarantor's credit history, income, employment details, national insurance number, and bank details.

But what exactly does a guarantor agree to? Well, they are essentially agreeing to cover your rent if you fall behind on payments. They may also be responsible for any damages to the property. If you don't have access to a UK-based guarantor, there are other options you may consider, such as making upfront payments. However, this may not be affordable for everyone and it's ultimately up to the landlord's discretion.

Before agreeing to become a guarantor, it's important to consider the potential risks. As Liz points out, the worst-case scenario is that the guarantor is left with debts to pay. So, it's crucial to thoroughly read and understand the guarantor agreement and the tenancy agreement before signing anything. Keep in mind that if you're living in shared accommodation with other tenants, the guarantee may apply to the entire rent, not just your share.

Now, let's shift gears and talk about something else you should consider before heading off to university - protecting your belongings. We know, insurance may not be the most exciting topic, but it's necessary. Imagine how you would feel if your laptop went missing or your speaker got damaged at a party. According to recent research from Confused.com, over half of UK students are not covered by contents insurance, despite the fact that one in 20 has experienced a break-in while at university. So, it's worth checking if you're already covered under a parent or guardian's insurance policy before you move in September. This may include cover for items inside your temporary home or while traveling to and from your parents' address.

However, it's important to consider the limitations of this coverage. For example, it may only cover items inside your temporary home and not outside of it. Additionally, when does the liability end? Many agreements are open-ended, meaning the guarantor's liability could extend beyond the fixed period of the tenancy. It's crucial to fully understand the scope of the commitment before agreeing to become a guarantor.

Naturally, there are common mistakes that people make when choosing or accepting someone as a guarantor. This includes not fully understanding the legal and financial obligations, as well as the potential strain it could put on personal relationships. It's important to think carefully before agreeing to become a guarantor and to communicate any concerns or questions with the landlord. And if you do decide to become a guarantor, make sure you have a solid understanding of your responsibilities and can afford to cover any potential debts.

So, there you have it. Everything you need to know about guarantors and insurance before heading off to university. We hope this information has been helpful and wish you all the best as you embark on this exciting new journey. And remember, if you have any questions or concerns, don't hesitate to reach out. Good luck!

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