I have failed referencing. Can I still rent a property with a guarantor?
Failed referencing does not neccessarily mean you will be unable to rent a property, this will depend upon the reason your referencing has failed.
It could be that you are a student, or unemployed and do not have sufficient income to meet the monthly payments, and thus fail the 'affordability' element of the referencing assessment, or you are renting your first flat after your studies and don’t have wage slips etc. to support the ' affordability' or 'creditworthiness' elements of the referencing review.
In such circumstances you may be able to provide a guarantor (e.g a parent) who will guarantee that if you're unable to meet the monthly rent payment they would make the payment on your behalf. Your guarantor would be referenced in exactly the same way as if they were a tenant and will have to pass the same referencing checks to ensure they are able to pay the rent in the event that you cannot. The guarantor will usually need to be a UK Homeowner, and will need to demonstrate their affordability and creditworthiness, as they will be taking on the same responsibilities as the Tenant they are agreeing to Guarantee.
If you do not have someone who is willing to act as a guarantor you may also be able to pay additional rent for the tenancy up front. You will need to discuss this option with the ludlowthompson representative in this event for further details.
3rd July 2015
DISCLAIMER: Neither ludlowthompson nor their ‘experts’ take any responsibility for any action or loss incurred by readers of these pages. The reader acts on advice at their own risk. Answers to questions are not exhaustive. Financial advice must always be sought from a professional financial adviser
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS