Frequently Asked Questions
Guarantor Loans
Why was my guarantor declined?
Unfortunately, in some cases, a guarantor will be declined. Read More
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
Do guarantors get credit checked?
Yes. Your credit file is checked when the signed completed application is sent to the lender. Read More
Can being a guarantor affect your credit rating?
Possibly. When first applying to be a guarantor, this typically does not affect your 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
Will being a guarantor affect getting a loan?
Possibly? There may be some lenders that could consider your potential loan payments as a guarantor when assessing loan affordability. 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
What happens if a guarantor refuses to make the loan repayments?
If you refuse to pay, the consequences can be the same as if you defaulted on a loan you’ve taken out yourself. 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
Can my family member, partner or spouse be my guarantor?
Yes, all the following all accept partner/spouse as guarantor. Read More
How do I know if the borrower will repay the loan?
This depends on how well you know the borrower. Read More
