Being a Guarantor

I’ve been asked to be a Guarantor – what does this mean?

Someone you know has applied for a loan and they need to have a backer to support their application. Read More

Who can be a guarantor for a loan?

You need to be between 18 and 75 and a UK resident. For all criteria click here.

What do you need to be a guarantor?

A regular income so the loan is affordable, plus a clean credit history. Read More

Does the loan appear on a guarantors credit file?

Loans do not appear on the guarantor’s credit file. Read More

What is a guarantor liable for?

You're liable for the full balance of the outstanding loan from the time the borrower stops paying. Read More

Does being a guarantor affect your ability to get a mortgage?

It's possible. Other mortgage brokers and lenders could consider potential loan payment that you could be liable for as the loan backer. Read More

Can you be a guarantor without being a homeowner?

Yes. Many of our lenders allow tenants and non-homeoweners to be guarantors. Read More.

Can you be a guarantor with bad credit?

Typically, lenders will only allow loan backers with a good to marginally imperfect credit score. Read More

What if the guarantor loans borrower stops making the repayments?

With most lenders, once the loan account is up and running, if anything happens... Read More

Can I change my mind about being a guarantor?

You do have a right to cancel under some circumstances. Read More

Is there any benefit to me being a loan backer?

The benefit to you is that you are helping a friend or family member access credit when they otherwise may be unable. Read More

How do I know if the borrower will repay the loan?

This depends on how well you know the borrower. Read More

Been asked to be a guarantor but unsure?

When someone asks you to do this, especially if you are close, then there may be pressure to say yes? Read More

Can you be a guarantor for more than one person?

Typically, no. As they're required to make the loan repayments if the borrower stopped paying... Read More

Is the loan secured against a guarantor’s home?

No. These loans are unsecured.... Read More
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