What Is Loan Eligibility Criteria?

You must be able to show that you can comfortably afford the loan repayments:

• Income – all our lenders have minimum income requirements, and some will not allow state benefits such as job seekers allowance. However, we do have lenders who do allow self-employed, part-time, and some benefits.
• Expenses – your expenses will need to be suitably less than your income to ensure you have the surplus to comfortably afford the loan repayments.

To help you work out your monthly budget, check out the Citizens Advice Bureau’s Budgeting Tool

Typically, you and your guarantor

• 18 to 70 – need to be between 18 – 70 years at the time of the application
• Can vary between lenders – some lenders allow slightly younger, and some slightly older (though always a minimum 18 years)

All our lenders require you and your guarantor to be permanent UK residents at the time of application.

• Length – the length of residency required does vary from lender to lender
• Permanent residence card – you will be required to have a Permanent Residence Card.
• Electoral Roll – you will normally also be required to be registered on the electoral register.

You will be required to have a permanent UK address 🏠

• Rented – a rented home is fine so long as you have an assured shorthold tenancy agreement (even in a shared rental property).
• Homeowner – you can also be a homeowner, and the loan is not secured against the property.
• Electoral Register – being on the electoral roll at your registered address will help your application.

At the time of writing all lenders require you and your guarantor to have

• A UK bank account
• Direct debit capability
• Debit card facility

Our lenders will not allow insolvent applicants

• Bankrupt – currently undischarged bankrupt
• IVA (or Trust Deed for Scotland) – currently within an individual voluntary arrangement
• Debt Management Plan – currently in an arrangement with other creditors to pay off a reduced level of debt, in a DMP.

If you are currently insolvent and are having money worries, please contact The Money Advice Service.

• Guarantor – A guarantor is required, and if you stop making the payments, they will need to step in. Your guarantor can be your husband or wife (one of only two lenders that allow this), tenant guarantors are acceptable.
• Age – At the time of applying you must be at least 18 years old. Your guarantor must be aged between 21 and 75 years old.
• Affordability – For financially linked applicants, you and your guarantor need to be able to afford the loan in our own right, with separate income and expenditure. For homeowner guarantors and applicants, there must be no mortgage arrears for the last six months.
• Insolvent – You need to be solvent, so not in a DMP (debt management plan), IVA (Individual Voluntary Arrangement), Trust Deed (Scotland), or bankrupt.
• UK Residency – All applicants and guarantors must be UK Residents
• Non-homeowner – tenants are accepted as applicants and guarantors.
• Credit Rating – The credit rating of the borrower can be poor but the loan guarantor must be able to demonstrate a good credit history.
• Direct Debit & Bank Account – You will need a valid UK bank account.

See our Guarantor My Loan page

• Guarantor – A guarantor with a good credit history is essential.
• Age – The borrower must be at least 18 years old when applying for the loan. The guarantor must be aged between 18 and 74 years old.
• Affordability – You must be able to comfortably afford the repayments.
• Insolvent – Must not have been bankrupt or in an Individual Voluntary Arrangement in the past 12 months.
• UK Residency – All applicants and guarantors must be UK residents
• Non-homeowner – Neither the applicant nor the guarantor needs to be a homeowner.
• Credit Rating – The credit rating of the borrower can be poor, but the loan guarantor must be able to demonstrate a good credit history.
• Direct Debit & Bank Account – You must have a valid UK bank account.

See 1 + 1 Loans page