Notes on comparing loans
On the surface it might seem that they are all broadly similar but there are actually quite a few differences you should be aware of when you compare guarantor loans. Our lender compare table will give you a quick overview of the headline figures but here are a few things to look out for:
- The term of the loan; this will generally range from 12 to 60 months but at least one lender offers a minimum term of 24 months. If you are looking for a very short term loan this is an important consideration.
- The APR; while this will usually be around 50% a 5 or 10% difference could either save you or cost you a considerable sum over the term of the loan.
- The amount available; while most companies offer between £500 and £7500 it is possible to borrow up to £12,000 under certain circumstances. Think carefully about how much you need and don’t be tempted to borrow more than you can afford.
- Early repayment fees. If you are experiencing a temporary downturn in your finances you might want to leave yourself the option of repaying the loan early and saving yourself some money. Many companies do not charge an early repayment penalty (usually as long as it’s over 12 months) but it is very important you double-check this or you might discover you are liable for additional fees.
- The guarantor criteria; an adult UK resident with a good credit history is usually an acceptable guarantor but if you want to ask a friend or family member who is not a homeowner this is possible with some of the loan companies. You might need to do a little bit of research to discover the exact criteria but you can find more information on our lender information pages.
To find out more about how much you can borrow why not fill in our online form and our lenders will have their offers back to you within minutes.