What Is a Guarantor? Why You Might Need one

If you’re renting in the UK, you’ve probably heard the phrase guarantor, especially if you’re a student, starting a new job, self-employed, or have some form of adverse credit history like a CCJ, IVA or Bankruptcy. A guarantor can be the difference between getting the keys or missing out on a property you desire.

What is a guarantor?

In most UK tenancies, the guarantor signs a legally binding agreement (often a Deed of Guarantee) that supports the tenancy. If the tenant falls into arrears, the landlord can pursue the guarantor for payment, subject to the terms in the agreement. A suitable guarantor must be credit worthy and in a financial position to cover rental payments should the tenants default on their rent.

Think of it like this: You’re the tenant. The guarantor is the safety net.

Why do landlords and letting agents ask for a guarantor?

Landlords and letting agents use referencing to check affordability, credit worthiness etc, and to reduce risk. A guarantor is typically requested when there are elements of the tenants reference checks that may not meet certain criteria.

1) Your income doesn’t meet affordability criteria

Many referencing processes use an affordability calculation (for example, rent should be a sensible proportion of income). If your income is too low, variable, or not yet evidenced, you may be asked to provide a guarantor.

2) You’re a student (or have limited income history)

Students often don’t have full-time income, which makes affordability hard to prove—so a guarantor requirement in this situation is very common.

3) You’re self-employed, freelance, or on contract work

Self-employment income can be perfectly healthy—but it may be harder to verify (especially if you’re newly self-employed or between contracts). A guarantor can help smooth the process.

4) You’re new to the UK or have limited credit history

If you’ve recently moved to the UK, you might not have enough credit history for standard checks. A guarantor can reassure the landlord while you build a profile.

5) Your credit file flags a concern

You have a record of some form of adverse credit history such as a CCJ, IVA, Trust Deed or Bankruptcy on your credit file.

6) The landlord’s insurer or rent guarantee policy requires it

Sometimes the requirement comes from the landlord’s insurance or mortgage criteria, rather than the landlord personally.

What does a guarantor actually agree to?

This depends on the wording of the guarantee, but commonly a guarantor may be liable for:

• Unpaid rent (arrears)
• Damage beyond fair wear and tear (in some agreements)
• Legal costs associated with recovering arrears (sometimes)
• Other charges set out in the tenancy/guarantee (only if explicitly included)
• Being a guarantor is not just a casual agreement, it’s a serious legal commitment.

What checks may a guarantor go through?

A guarantor is usually referenced in a similar way to a tenant. Checks can include:

• Identity verification
• Credit check
• Employment/income verification
• Affordability assessment (can they realistically cover the rent if needed?)

LetHQ, for example, offers guarantor referencing as part of its tenant referencing services—designed to help landlords and agents make faster, safer decisions.

Benefits of having a guarantor

For tenants:

• Improves your chance of being accepted
• Can speed up the decision when there are affordability gaps

For landlords and letting agents:

• Adds an extra layer of security if rent isn’t paid
• Can reduce arrears risk and disputes

Risks and responsibilities

For tenants:

• If you miss payments, it can strain relationships—especially if your guarantor is family.
• Your guarantor may be contacted quickly if arrears arise, depending on the tenancy terms.

For guarantors:

• It’s a legal commitment that can involve substantial sums.
• If the guarantee is broad, liability may include more than just rent.

Some guarantees attempt to cover renewals—guarantors should check this carefully.

Tips to make guarantor approval smoother

For tenants:

• Tell your guarantor early—don’t spring it on them last minute.
• Gather documents in advance (ID, payslips, employment details).
• Be upfront about anything that might show on the credit check.

For guarantors:

• Read everything before signing.
• Confirm whether the guarantee is limited to the fixed term.
• Ask whether it’s joint and several (common in shared houses)—this can increase exposure.
• For landlords and agents
• Use a consistent referencing process to avoid delays and disputes.
• Ensure your guarantee wording is clear and compliant.

Consider specialist support and referencing platforms that streamline decisions (LetHQ provides tenant and guarantor referencing, alongside rent protection options).

FAQs

Does a guarantor need to be a homeowner?

No, but some landlords may prefer it. More commonly, a guarantor must be both credit worthy and in a financial position to cover rental payments should the tenant default on their commitments.

Can a friend be a guarantor?

Yes—if they meet the criteria and understand their responsibility.

How can LetHQ help

LetHQ supports over 8,000 agents from across the UK with their range of pre tenancy assessment checks and specialist insurance. Their Guarantor reference product is trusted across the country and can be easily set up online. For further details visit: https://lethq.co.uk/service/guarantor-reference/ or call 0343 612 2233.