Hi, I have just had a guarantor fail referencing on affordability.
Basically a 77 year old mum that was going to be a guarantor for her daughter. The report only showed pension income, don’t the references also consider savings and being a home owner?.
affordability is solely based on regular income.
Savings can disappear and the fact that she’s a home owner is only relevant if you pursue her for debts because she can borrow against the home as collateral to pay you.
Unless the savings are considerable against the rent then I wouldn’t pursue this. And by considerable I mean six figures.
You’d have to ask OR referencing but doubt they will say, if they make public their calculation methods people will then try to get round.
Savings can easily be spent and they may have a mortgage, if the daugher fails to pay will you force a 77yo mother on a pension to sell or to get a loan to pay the rent arrears?
They have failed so you wont be able to get RGI so unless you were happy to rent based only on the daughter’s report, or they can find a different guarantor who will pass, find a different tenant
Good luck