Guarantor loans are a common type of loan, particularly for applicants with a poor credit history. With guarantor loans, a second person is included in the application as a guarantor for the repayments. This means that if you are unable to keep up with repayments and fall into arrears, the guarantor for the loan will be required to make the payment on your behalf.
As a broker, we are committed to finding every applicant a competitive loan which suits their individual circumstances. We have partnered with a panel of lenders which provide loans to individuals with every type of credit history. This means that if you have struggled in the past to find a loan without a guarantor, we may be able to arrange competitive guarantor loans for you.
In many situations a guarantor is a friend or family member, although there are a strict set of criteria which most lenders look for in a guarantor. In general, they will need a good credit history, be based in the UK and aged over 21. Occasionally, if you are looking to borrow a larger amount of money, the lender will ask for you to provide a guarantor which is a homeowner.
It is important that the person who acts a guarantor for you fully understands the loan agreement. If you fall behind with repayments, the loan will become their responsibility, so it is important that you both trust each other, read the terms and conditions and understand the risks.
The lenders we work with can provide guarantor loans for as little as £100 to a maximum of £5000, with repayment terms of 3 months to 36 months. In general, if you borrow less than £1000 you will be able to choose repayment terms of 3, 6 or 12 months. We know that when you are looking for a loan it is usually because you need the funds quickly, so our lenders complete the application process quickly and efficiently.
We have developed a quick 2-minute application form, which can be completed on your phone, tablet or computer. We will conduct a soft search of your credit file, which will help us match you to the lender which is most likely to approve your loan. Once you submit your application the lender will conduct their final processing checks, including a credit check and if successful your loan will be issued.
If you are struggling financially and feel that your debts are mounting, you should consider whether guarantor loans are the right option for you. There are organisations such as The Money Advice Service and Step Change, which will be able to offer you free and impartial financial advice.
Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative. We’re a fully regulated and authorised credit broker and not a lender