www.iva.co.uk

Hi – my friend has asked me to be a guarantor for a rental agreement for 6 months. Now, whilst i know that this person has enough money to cover 6 months’ rent and will not default, she is only 18 so has no credit history – plus does not know about my IVA. So, question is, can i do it – either with a credit check or with my IVA in place?

With thanks,

Mark.

Hi Mark, nice to see you.

You won't be allowed to be guarantor for your friend I'm afraid. If she did default after that time then it would all fall upon you.

Hi - thanks for that. I rather thought as much, but wondered if i'd just fail the credit check (as in what does the check involve as all i would fail on is passed missed payments, not missing housing links etc) or would i have to ask my IVA company first - just to see what happens. I mean, could i just try and see what happens? I hope you see what i am getting at! I know i'd fail a normal creit check, but is a rental check just to make sure you are who you say you are?

You won't be allowed as you will be responsible for the debt if she fails to pay.

Thanks again - out of interest however, do you know the correct answer to my last sentance? Otherwise i'll wait until Monday to ask the EA.

Thanks,

Mark.

I imagine it will be a full credit check so that you can make the payments if the person defaults.#

You would have to speak to your IP to get this approved anyway and I doubt they would agree to it.

Hi - I know someone who is a guarantor and no credit checks were done...they woukd have failed without a doubt!

Nope, i doubt they would either and this was all "matter of fact" really as i was mainly interested in my final point. But thanks for your time though!

You won't be able to do it in an IVA though!

Dear me, i am aware of that thanks though. My final sentence is not to do with an IVA. It relates only to what is involved in a rental agreement credit check. So what explicitly is being checked - a person’s ability to pay a bill (which me being in an IVA pretty much counts me out i know), or a check that a person says who they say they are. But it is ok if you do not know, i will ask the Estate Agent Monday. For the record, i am not going to say i can do this.

Mark.

Hi Mark, as has been said, anyone in an IVA would not be allowed to be a guarantor. However, in my experience the checks for a guarantor were different to a credit check.

Let us know what the EA says

On the other hand, my guarantor (daddy) was not only credit checked but had to provide a letter from his accountant confirming his income (self employed) and had to complete an affordability questionnaire! Had my sister gone guarantor for me, they wanted a payslip in addition to the credit check and affordability bit. So I guess it depends on the letting agent.

Each situation will be different but if you are in an IVA you will not be allowed to be a guarantor.

I agree BOL, all down to individual letting agents.

As Jan says, anyone in an IVA will not be allowed to be a guarantor, but if they didn't have to declare the IVA???

I still think they would not be allowed to do it - if the person involved did not pay the rent then the guarantor would be responsible for it so it would affect their IVA.