When someone asks you to do this, especially if you are close, then there may be pressure to say yes?
If, however, you are not comfortable then this is something you should not do.
- Once you have signed the guarantor agreement, it may be impossible to have your name removed until the loan agreement has been paid back.
- To help build trust, ensure the borrower only gets a loan for the amount they need – i.e. if they need £1,000 they do not take a loan out for £2,000.
- Also, ensure they can comfortably afford the repayments – we would do this by using our loan calculator to estimate the repayments.
- Use the Citizens Advice Bureau’s Budget Sheet to map out their income and expenditure.
For everything, you could ever need to know about
being a guarantor on a loan for someone
See our dedicated page