What are Guarantor Loans?
This type of loan is an unsecured loan where another person acts as your Guarantor and signs a indemnity document and a guarantee which is an agreement to repay your loan if you are unable to make your repayments. Your Guarantor will not have to make any payments if you make your repayments on time and according to your agreement.
Who can have a Guarantor Loan?
A guarantor loan is a loan specifically for those who may not otherwise be able to get the loan that they need. It may be that they have a bad credit history or are unemployed or have a low income but for whatever reason cannot get the loan they need. A Guarantor would mean that you can access a loan providing that your Guarantor meets our basic criteria.
Homeowner or Tenant?
There are two types of Guarantor, a homeowner and a tenant Guarantor. Both type of Guarantor are acceptable providing that they can demonstrate that they have a good credit rating and that they are in a position to make your payments should you become unable to yourself.
What is the process?
If you need a Guarantor loan then simply use our easy to use sliders which allows you to decide how much you want to borrow and how long you want your repayments to be spread out over. You will then be able to click apply and will complete an application form. On completion of your form and that of your Guarantor and submission of any documents required your loan will be processed.
How much can I borrow?
You will be able to borrow between £1000 – £7500 depending on your situation and that of your Guarantor.
Who can be the Guarantor for my loan?
Anyone can be a Guarantor, whether that is a family member or a friend as long as they meet certain criteria. They will need to be aged over 25 years and under 65 and it doesn't matter if they are employed, self employed or retired as long as they can demonstrate that they will make your payments should you become unable to yourself. Your guarantor would need to have a credit check first.
I have been asked to become a Guarantor for someone !!
If you have been asked to act as a Guarantor then you will have to complete a form and provide some documentation. Once your loan has been approved the money will then be paid directly into your own bank account. You will then be able to make arrangements to transfer this money in the account of the person who you are acting as guarantor for.
Do you charge any fees?
We do not charge you any fees at any point during your loan process, whether your loan is accepted or not you will not be charged any fees from us.
Do you charge any interest?
You will be charged interest on a daily basis by your provider not by us, any over payments that you make will help reduce the amount of interest that you pay.
Are you regulated?
We are fully regulated by the FCA Financial Conduct Authority for credit brokers and our FCA number is 626214, your loan provider is also regulated by the FCA.
Will my payments increase over my loan term?
No, your interest rate will be fixed and therefore will not change providing that you continue to make your repayments.
Can I act as a Guarantor even if they are my partner?
Yes, that is not a problem
Why does my loan go into my Guarantors bank account and not mine?
For security reason your loan must be paid into your Guarantors bank account, this makes it a safe and secure process for everyone involved and we can be assured that your Guarantor is fully aware that they are acting as the guarantor for you.
If I am a Guarantor how will this affect me?
You will not be affected if the repayments are met, should any payments be missed then we may contact you to arrange a future payment and to discuss your options. You will become liable to make the repayments if the person who you are acting as Guarantor for is unable to make them themselves.
What happens if I can't make a repayment?
If you can't make one of your repayments then you will need to discuss your options with us as well as your Guarantor who needs to be made aware of this as soon as possible because they will then be liable for your loan repayments. Arrangement will be made to recover the amount you have missed or for the total loan to be paid in full.
You will not be able to take out your loan if it is felt that this will put you or your Guarantor under any adverse financial pressure.
Can I make an overpayment?
Yes you can, you can make an overpayment by phone or direct with your bank, and any overpayment you make will help reduce the total amount you have to pay because your increase is charged on a daily basis.
Am I able to get a loan without having a Guarantor?
No, this type of loan is only for those who want a Guarantor to get their loan, we cannot help you if you need any other type of loan other than a Guarantor loan.
What if I can no longer make my repayments?
Should you ever be in a position where you can no longer make your repayments then we do advise that you speak to your Guarantor. You will also need your loan provider who will discuss your options. An arrangement will then be agreed about how to best help you; alternatively your Guarantor will be able to make your payments for you. If this should happen then the Guarantor will be contacted on a regular basis to ensure that they do not themselves have any problems with making your repayments. Your Guarantor will always have the full support they need however should the worse happen and they cannot make your repayments then they will be advised that a solicitor may need to become involved in settling the matter and any costs as a result will then be added to your account. You are advised to contact the money advice service if you cannot make the repayments.