All you need to know about rental guarantors
What is a guarantor?
A guarantor is a person/company that is legally responsible if you default on your rent or damage the property.
Can you be my guarantor?
This is what we do! Fill out the form on our website to begin the application process.
What is the process?
• Pre-qualify via our online form
• Pay our fee
• Provide outstanding documents information and complete the application process
• Sign the Guarantor Agreement
How do I qualify?
To act as your guarantor, we need to validate your identity, rental record, credit background, financial abilities and Co-Signer information if you are a student.
Student or graduate with no income?
We can help you. When assessing your finances, we will look at your income (if any) and job prospects. We always take account of the big picture to arrive at a sensible outcome. You might be required to provide a Co-Signer.
What is a Co Signer?
Your Co-Signer can be a parent or guardian, or somebody else who we can contact in the event that you do not pay your rent. This person will take responsibility for meeting your commitments within your tenancy agreement, if for example you do not pay your rent. They do not have to reside in the UK. A Co-signer cannot be receiving benefits.
How much does it cost Landlords?
Nothing! Landlords will be able to let out their properties to great tenants at no additional cost.
What happens if I do not pay my rent?
Your legal obligations under your tenancy agreement remain the same with or without a guarantor. If you default on the rent, we will pay the landlord on your behalf and arrange with you to repay the arrears.
Is there an application fee?
Once you pre-qualify for a rental guarantee, you will be invoiced to pay a one-off fee (that can be paid in several instalments) for our service. The fee is 100% refundable minus an admin fee if you would like to withdraw your application.
I am unemployed and on benefits. Am I eligible?
Unfortunately, we can't act as your guarantor if you are unemployed and also on benefits. Your benefits can only account for 20% of your total income. However, we can take into account other income as long as you can provide proof.
I have received a CCJ within the past six years, will this affect my application?
This may affect your application depending on the amount of the CCJ and whether or not it has been satisfied.
What is Homeppl?
Homeppl specialises in authenticating people’s data and creditworthiness. They can reference any type of tenant including internationals. With new technologies, Homeppl offers the fastest, easiest, and most comprehensive tenant validation solution in the rental market. We use Homeppl for our guarantor eligibility check.
Is rental guarantor an insurance product?
No, rental guarantor is not an insurance product. Generally, tenant guarantees do not fall within the scope of insurance.
How much does rental guarantor cost?
We offer the lowest possible fees, 50% less than our competitors. To act as your guarantor, we charge equivalent to 3 weeks rent (just your share of the rent where there are multiple occupants).
For how long does the guarantee last?
The initial term is valid for a maximum of 12 months but can be renewed.
What is the affordability criteria?
If you are employed, your annual income must be at least 22 times the gross monthly rent. For Co-Signer's, we require an annual income of 30 times the gross monthly rent.
I am employed, what documents do I provide?
We require a copy of your ID, three years residential history and a signed contract or payslips dated from the last 3 months. Your yearly income must be 22 times the gross monthly rent
I am on benefits, what documents do I provide?
We require a copy of your ID, three years residential history and a government document confirming benefits from the UK, stating the amount, date, and frequency of payment. Your benefits should only account for 20% of your total income.
I am a student, what documents do I provide?
We require a copy of your ID, three years residential history and including references and a proof of study document (council tax exemption letter, bank registration letter or letter of enrolment dated within the last three months)
What can be used as an ID document?
A valid proof of identity document could be a passport, driver's license or birth certificate
What is your refund policy?
If we determine that the information provided by you is false or misleading or if you would like to cancel your application after 24 hours, we will charge an admin fee of £30 and refund the remainder of the payment made.
Do you sign the Tenancy Agreement?
No, we do not sign the Tenancy Agreement or any other third-party documents as we have our Guarantor Agreement in place which covers the responsibilities of the tenant according to the Assured Shorthold Tenancy.
Why do you require Open Banking access?
As part of your guarantor obligations, you are required to report your rental payments. Open Banking access to your main current account allows us to get a report of your monthly rental payments. We require you to renew such access every month. We are working with TrueLayer Limited, a secure, authorised service that acts as a messenger between us and your bank.
What if my landlord does not accept a guarantor?
We work with hundreds of letting agencies, student accommodations, new developers, and associations across the UK. However, if your landlord does not accept guarantors, we will give you a refund.
PROP dot Mobi Rental Guarantor
How does this work?
We are a guarantor service, which means we will act as your guarantor for a period of up to 12 months.
Once you submit the form on our website, we will let you know if you meet our minimum requirements. If you do, you will receive a quote for our service which you can choose to pay in full or in two instalments.
After you’ve made the payment to us, you go through the referencing stage, where we will ask you for the documents to support your application. Once your documents have been verified, we will send you and your future landlord our contract to be signed.
The whole process takes around 1 to 3 business days.
What if I’m receiving Universal Credit, PIP, Housing Benefits or other benefits?
We do accept PIP and other benefits as long as they're not over 20% of your total income.
What is a Co-Signer?
A co-signer is either a parent, guardian or anyone within your circle of family and friends that we will be able to contact in the event that you miss your rent payments. This person needs to have an annual income of 30 times your monthly rent share and cannot be in receipt of government benefits. Your co-signer does not need to be a UK-resident.
What are the minimum acceptance requirements?
If you are employed/self-employed, your annual income needs to be 22 times your monthly share of the rent.
You cannot be unemployed.
Your only source of income cannot be benefits.
You can be in receipt of benefits, however, they cannot be over 20% of your overall income.
If you are a student, you need to have a friend or family member that will act as your co-signer.
You cannot have an active CCJ.
How much do you charge?
Our fee varies depending on your situation, so we recommend submitting the online form to get an accurate quote.
If you want to calculate it yourself, it’s 5.8% of your total share of the rent for the length of your tenancy, which for a 12 month tenancy is around 3 weeks rent.
Is your fee a monthly payment?
No. Our fee is a one-off payment for the initial period and there are no additional hidden charges throughout your tenancy. Once you pay our fee, we will not charge you for our services again unless you choose to renew for another period.
My invoice is too big, can I pay it in instalments?
Yes. We can split our invoice into two equal monthly instalments. Once you receive your invoice just reach out and we will make it happen.
What happens after I pay?
We will ask you to provide documents relevant to your application and for you to connect your bank via Open Banking through our secure portal. Once all the documents and information has been validated, we will send you and your future landlord our contract to be signed and we officially become your guarantor.
How long does it take to set up?
Usually around 1 to 3 business days.
What happens if I miss a payment?
We will step in and make your rent payment to your landlord. Your landlord will reach out and let us know that a payment is due, and we will act on it. After that, we will work with you towards a repayment plan that fits your situation with no credit agencies and no interest fees applied.
What documents do you need from me?
We will always request your Right to Rent document: this can be either your passport or visa if applicable. We will also need your proof of address: this can be a bank statement/payslip/official letter dated within the last 3 months under your name.
If you’re a student, we will need your proof of study and co-signer contact details. Your co-signer will need to provide ID and proof of income.
If you’re employed/self-employed we will require proof of income which can be via bank statements, payslips or your last SA302.
What is Open Banking?
Open Banking is a regulatory initiative driven by the Competition and Markets Authority. It enables consumers to send data to service providers in order to access better products or services.
We require Open Banking access to your main current account so that we can report on your monthly rental payments if required. We work with TrueLayer Limited, a secure, authorised service that acts as a messenger between us and your bank.
Do you accept joint applications?
No. If you and another applicant to the same property are in need of a guarantor, please submit separate applications on our website with your respective rent shares.
Can you help me if I have a bad/low credit score?
If you have an active CCJ we are not able to act as your guarantor.
If you have an IVA on your record, we are not able to act as your guarantor.
If you have a satisfied CCJ, please submit the form, we may be able to help depending on the amount and when it was satisfied.
If you are new to the country or simply have a low UK credit score, we can help you.
What if I don’t get the property?
You will have two options:
• You keep your application with us and start hunting for another property with the security that you already have a guarantor backing you up.
• Or you can request a refund which we will act on as soon as you request it and you should see the money in your account within a few days.
If I still need a guarantor when I renew my tenancy, do I have to pay the fee all over again?
If your landlord or agent requires you to provide a guarantor again and you’ve never missed a payment during your tenancy, we will offer you a 10% discount of our fee. We will ask for any documents that need updating, however, the process should be very smooth.