What is a Rent Guarantor and Who Can Be One in Peterborough?

If you’re looking to rent a property in Peterborough, Northampton or Wellingborough, you may be asked for a guarantor.Before applying for a rental property, it is worth understanding what is a guarantor for rent and why a landlord or agent might request one.

A guarantor can step in if you default on your monthly payments and reassure your landlord that you’re a safe bet as a tenant.

We explain in more detail what a rent guarantor is and why you might need one.

What Is A Rent Guarantor?

A rent guarantor is a person who agrees to pay the rent if the tenant cannot. If a tenant misses rent payments, the guarantor is legally obliged to cover the unpaid rent.

A guarantor will usually also be liable for paying for damage to the property if the tenant does not pay for it. Typically, a guarantor will be a parent or close relative.

Why Do I Need A Rent Guarantor?

If you’ve never rented property before or don’t have a stable income, you might be told by the landlord or letting agent that you require a guarantor.

When a landlord chooses a new tenant for their property, they will seek references and carry out a credit check.

Ideally, they will aim to get references from your employer and previous landlord. But if you can’t provide these – maybe because you’re a student or new to renting – then you might be asked to provide a guarantor to pay your rent if you don’t.

These are some of the factors that could mean that you need a rent guarantor:

Young adults and students

Young adults tend to have a limited credit history because they previously lived with their family and did not have bills in their name.

Students will usually require a rent guarantor as they generally do not have an income to cover the rent payments. So, students from local universities such as the University of Northampton may need to find a guarantor for rent to live in a shared student property in the Northampton area.

People who move to the UK from overseas, including international students, are unlikely to have a UK credit history.

Low income

When renting a property, you will usually be required to have a gross annual income that is a minimum of 2.5 to 3 times the annual rent. If you can’t demonstrate this income level, you may still be able to rent the home if you can supply a rent guarantor. Alternatively, the landlord may ask for several months’ rent in advance.

Bad credit history

You may also need to provide a guarantor if you have a history of bad debt, rent arrears or county court judgements against you. Or if you fail a credit check because you have never had credit before.

Do I Need A Rent Guarantor If I’m Self-Employed?

When renting property, you will probably be asked for an employer reference and to show evidence of your income in the form of payslips. If you’re self-employed, you will be expected to provide other proof of income – details of your accounts or at least six months of bank statements. Anyone who can’t provide the right evidence might be asked for a rent guarantor.

Who Can Be A Guarantor For Rent? 

Generally, people will ask a relative or friend to act as a guarantor, but the specific type of relationship is unimportant as long as they have known you for at least two years.

These are the main requirements for a guarantor to be accepted:

• Must be at least 18 years old.
• Can prove financial stability (income or savings).
• Must pass a credit check and have a good credit history.
• Is a UK resident.

Retired people can usually be guarantors, provided that they can prove they have sufficient income or savings to make the rent payments and they have a good credit history. Retired guarantors can prove they have adequate income to cover rent through pensions, investments or another type of income.

It is not usually a requirement for guarantors to have their own property, as they are assessed based on affordability.

How To Ask Someone To Become Your Guarantor

If you are asked to find a guarantor, consider whether a parent, relative or friend would be willing to agree to the arrangement. Explain how it works and provide assurance that you will be able to afford the rent payments, explaining how your income will cover rent and bills.

If they have questions about what it involves, this is covered in detail in the next sections, and the landlord or agent should be able to provide a copy of the guarantor agreement so that they can read the terms.

How Does Someone Become My Guarantor?

After agreeing to be a guarantor, your guarantor will be asked to sign an agreement confirming their responsibilities – to cover the rent if you can’t and meet other potential costs to the landlord, such as for damage to the property.

You should ensure that you and your guarantor read this document and the tenancy agreement carefully before signing. Becoming a guarantor is a massive financial commitment, so the guarantor and the tenant must understand the implications of missed rent payments.

Your guarantor will need to provide the following:

• Proof of identity (passport or driving licence)
• Proof of address (recent utility bill or bank statement)
• Proof of income or savings (payslips, bank statements or pension evidence)
• Consent to a credit check
• A signed guarantor agreement setting out their responsibilities

How Long Will The Agreement Last?

A guarantor agreement is usually open-ended to ensure that your landlord is covered for arrears if you stay on beyond the initial fixed-term period of the tenancy. This means that the guarantor’s liability remains for the duration of the tenancy unless a new agreement is signed.

If a landlord issues a rent increase, the guarantor should be notified of the potential higher arrears, and an agreement in writing from the guarantor should be obtained.

When Would A Guarantor Have To Pay The Landlord?

If a tenant misses a rent payment, the landlord should contact the tenant in the first instance to discuss the missed payment. There could be a simple solution, maybe their pay day changed, for example. A payment plan could be arranged if they are having financial troubles.

Once the landlord has spoken to the tenant to get an idea of the situation, if they are concerned that the tenant will not be able to pay the missed rent, they can contact the guarantor to request payment.

In addition to the responsibility for covering payment if a tenant fails to pay rent, a guarantor would be required to pay for any damage caused to the property that the tenant is unable to pay for. This could be damage identified at an inspection or when the tenant moves out.

A guarantor agreement will include these obligations, clearly stating what the guarantor is responsible for paying. The rent guarantee agreement should also include the length of time that the guarantor is responsible for rent losses and damages.

What Does The Renters’ Rights Act 2025 Mean For Guarantors?

The new legislation under the Renters’ Rights Act 2025 has introduced added protection for guarantors in the event that a tenant passes away during the tenancy.

As of 1 May 2026, if a tenant dies, the guarantor would not be responsible for making rent payments after their death. However, they would still be responsible for rent arrears or property damage that occurred prior to the tenant’s death.

Where there are joint tenants and the guarantor was a family member of the deceased tenant, their liability would end on the date of the tenant’s death.

What If I Don’t Have A Guarantor For Rent?

If you don’t have a relative happy to act as your guarantor, or if they don’t pass the credit check, the landlord may still agree to rent to you. They may ask you to pay a substantial portion of the rent in advance instead of a guarantor. Another option for renting without a guarantor could be a commercial guarantor service, where you pay a fee in exchange for them acting as your guarantor.

Do I Have To Pay For Guarantor Reference Checks?

No, under the Tenant Fees Act 2019, your landlord can’t pass fees on to you, such as the cost of reference checks for you or your guarantor.

Guarantors For Joint Tenancies

If you rent a house share as a joint tenancy rather than individual contracts, your guarantor could be liable if anyone in the house defaults on their rent – not just you.

For example, a guarantor for someone sharing a house on a joint tenancy with three other people, could be responsible for all four tenants’ rent. It is important that the guarantor checks the guarantee agreement to understand what they are responsible for.

However, this liability differs in the event of a tenant passing away if the guarantor is a family member of that tenant.

Changes to death-liability under the Renters’ Rights Act 2025, means that if a guarantor is a family member for a tenant who passes away, liability for any other tenant’s rent ceases.

What Are The Alternatives To A Rent Guarantor?

If a landlord or estate agent requires you to have a guarantor but you do not have a family member or friend who can act as a guarantor, there are some other options.

You can use a rent guarantor company, paying a fee for the company to take on the responsibility of being your guarantor. The company assesses your affordability and risk level and provides a quote based on your rent amount.

Another alternative is that the landlord takes out rent guarantee insurance and they may ask the tenant to cover the insurance premium.

Do I Always Need A Guarantor To Rent?

If you meet the property rental criteria, including a good credit score, minimum monthly income requirements and clear background checks, you will not usually require a guarantor.

Even if you have required a guarantor in the past, changes to your circumstances may mean you meet the rental criteria without a guarantor.

Looking For Your Next Rental Home?

If you are looking to rent property in the Peterborough, Northampton or Wellingborough area, our experienced lettings team can help. Call us today to learn more about the rental properties we have available and for advice about renting one of our homes.