Guarantor Loans from £500 to £15,000

A guarantor is a friend or family member who is prepared to guarantee your loan and will be expected to make repayments in the event that you are not able for any reason. They will usually need:

• To be at least 18 years of age but under 75
• To be a UK resident, either a homeowner or a tenant
• Have a good credit rating
• Not be financially dependent on the applicant

The guarantor will be expected to complete details on your application and will therefore need to understand the role that they are agreeing to take on.

This does vary from lender to lender, though typically:

1. Over 18 years of age
2. UK Resident (excluding Isle of Man)
3. Not insolvent (IVA, Trust Deed or Bankrupt)
4. Have a UK bank account and a debit or credit card
5. Have a friend, colleague or family member with a clean credit rating who can guarantee your loan

Criteria for your Guarantor is as 1-4 above plus:

1. Good (or marginally imperfect) credit rating
2. Tenant or homeowner (homeowners will help you get loans over £5,000 plus better rates)
3. Provable regular income

NO 👎

Unfortunately, we cannot guarantee even that if you meet the lenders criteria, that your loan application, or the loan amount applied for will be successful.

Though typically if you do meet the criteria, with our wide range of lenders, the chances are that you will be able to get a loan. This is why we believe our service is so valuable, saving you the time and effort making numerous applications.

Whether you have been approached about being a guarantor or you need a guarantor, you will almost certainly have some questions about the process 🤔

On first look it might seem complicated but it’s fairly straightforward.

The role of the guarantor is to make the loan repayments if the borrower is unable.

However, this is usually a ‘worst case scenario’ and steps would be taken in the first instance to try to ensure the payments can be fulfilled by the borrower.

Nevertheless, it is important that it is understood that the guarantor may be expected to clear all the borrower’s debt.

Guarantor Criteria – In most circumstances the criteria required is straightforward

• Generally, between 18 and 75 years of age
• UK resident
• Good credit history
• Regular income, and the repayments affordable (if the borrower defaults)
• You cannot be financially dependent on the applicant so a spouse would not be acceptable.

If you have been asked it is reasonable to expect the borrower to give you a breakdown of their income to demonstrate they are able to afford the repayments without stretching themselves financially.

Being a guarantor is a serious undertaking and will have an impact on your relationship with the friend or family member involved. In most cases the borrower is more than aware of this and is much less likely to default on payments as a result; no one wants to ruin a good friendship.

If the worst happens and you are required to make some repayments or clear the loan itself this will not affect your credit rating so long as you do not default on the payment.  The lender will advise you as soon as possible if a payment has been missed.

We cannot make any guarantees as to whether your application will be successful or not.

We can assure you that our lenders specialise in offering loans to people who have a poor credit history who may not be suitable for traditional lending.

They’re able to do this because they use the credit history of your guarantor rather than your own.

So as long as your guarantor have a good rating and good affordability, there is a good chance your loan will be approved. Notable exceptions to this would be if:

• You have been declared bankrupt
• You are subject to an IVA or Deed Trust

Although on our application form we ask the loan purpose, there are no restrictions (except for illegal or immoral purposes) 👍

However, we would advise you to think carefully about whether the money is needed for important reasons.

Generally these might be:

• A short term solution to unexpected circumstances, usually to last until next payday.
• Car repairs or home maintenance.
• Debt consolidation.

We would urge you to remember that you are asking a big favour of your friend or family member to back your loan so you will need to demonstrate to them how seriously you have taken this decision.

No one will guarantee to lend your money without knowing your personal circumstances, so you cannot get a guaranteed loan 👎.

• Sometimes people confuse a guarantor and guaranteed loan.
• This is because the guarantor, the personal backing the loan on behalf of the applicant, can be asked to ‘guarantee the borrowers loan’.
• They are guaranteeing that if the borrower defaults, then they will make the payment on their behalf.

This is completely different to loan application success in some way being guaranteed, which it is not.

Guarantor loans are available to people who do not own their own home 👍

If you do not own a home this is not a problem, we’ve lenders who can help, even if you are:

• A tenant
• Living with family
• Living with friends

All our loans are unsecured, so property is not used as security, instead your guarantor is.

Your guarantor does not need to own their home either, we also have lender who accept tenant guarantors.

Typically, however, some of the lower rates are for homeowner guarantors.