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guarantors and benefits
Tracie Taylor
Posted: 16 December 2012 17:02:40(UTC)
#1

Joined: 16/12/2012(UTC)
Posts: 1

Hi,
I wondered if anyone could help - I have recently come off benefits and started a new job. Whilst on benefits, my parents were my guarantors. Is it true that once you come off benefits you no longer need a guarantor. My partner is not on benefits either anymore. Does anyone have any ideas. Would really appreciate any advice, thanks
jeffian
Posted: 16 December 2012 23:35:45(UTC)
#2

Joined: 09/03/2011(UTC)
Posts: 190

Thanks: 26 times
Was thanked: 147 time(s) in 74 post(s)
Tracie,
Firstly, well done to you and your partner for moving from benefits to work and I'm sure you'll both move on up now you've got your feet onto the first rung of the ladder!

Your parents are guarantors of what? Rent? A loan? I guess it's the rent on leased accommodation but the principle of a guarantee is the same whatever it is - that the person requiring the guarantee is not sure you will be able to keep up the payments and wants the security of someone who can. Unless your parents limited their guarantee in some way (e.g. a period of time) then it remains in place as long as your commitment to that landlord/lender exists. You could approach your landlord/lender, prove your new income and ask for your parents to be released from the guarantee, but there is no obligation on them to agree. If you end this agreement and enter into new agreements in the future, landlords/lenders may still ask for a guarantor for reasons other than your income - e.g. your age or credit record. Basically, it's a negotiation; you're probably stuck with the current guarantee unless you can get the existing landlord/lender to release it, and you don't have to offer a guarantee on any new agreements but then they don't have to rent/lend to you!
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