In principle, any adult with the capacity to contract can act as guarantor. To do this, they must of course be sufficiently financially well off, otherwise they won’t provide any added security for the party providing the loan or lease. There are some more specific requirements too, which will be covered in the following.
The requirements for being a guarantor for a private guarantee is as follows:
- Proof of residence at the given address
- Their income must be verified to be sufficient to cover the monthly payments
- Guarantors must be UK residents
- A guarantor must have a traceable UK credit history
- A guarantor should be able to show they have valid identification
There isn’t a determined income for specific repayment amounts; this changes depending on the field in which the repayments are being made. The requirements for each contract need to be known before suggesting a guarantor, or offering to be one. Serious applications should normally be above the minimum requirements.
As a student or young person it may be unlikely that you know someone with this income, so getting a private person to be your guarantor isn’t always an option. Instead, you may be able to hire a guarantor, although this will cost money. Because of this it may be more appealing simply to look for the right landlord, who is more understanding of your situation: maybe a tough path to choose in cities with a competitive rental market, but a safer option in more relaxed cities.