Don’t invest unless you're prepared to lose money. This is a high-risk investment.
You may not be able to access your money easily and are unlikely to be protected if something goes wrong.
Take 2 mins to learn more.
Risk summary for P2P agreements or P2P portfolios
Estimated reading time: 2 min
Due to potential for losses, the Financial Conduct Authority (FCA) considers this
investment to be high risk.
What are the key risks?
You could lose the money you invest
Many peer-to-peer (P2P) loans are made to borrowers who can't borrow money from traditional
lenders such as banks. These borrowers have a higher risk of not paying you back.
Advertised rates of return aren't guaranteed. If a borrower doesn't pay you back as agreed, you
could earn less money than expected. A higher advertised rate of return means a higher risk of
losing your money.
These investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce
the risk of the investment or protect you from losses, so you can still lose all your money. It
only means that any potential gains from your investment will be tax free.
You are unlikely to get your money back quickly
Some P2P loans last for several years. You should be prepared to wait for your money to be
returned even if the borrower repays on time.
Some platforms may give you the opportunity to sell your investment early through a 'secondary
market', but there is no guarantee you will be able to find someone willing to buy.
Even if your agreement is advertised as affording early access to your money, you will only get
your money early if someone else wants to buy your loan(s). If no one wants to buy, it could take
longer to get your money back.
Don't put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky.
Spreading your money across different investments makes you less dependent on any one to do
well.
A good rule of thumb is not to invest more than 10% of your money in high-risk-investments.
The P2P platform could fail
If the platform fails, it may be impossible for you to collect money on your loan. It could
take years to get your money back, or you may not get it back at all. Even if the platform has
plans in place to prevent this, they may not work in a disorderly failure.
You are unlikely to be protected if something goes wrong
The Financial Services Compensation Scheme (FSCS), in relation to claims against failed
regulated firms, does not cover investments in P2P loans. You may be able to claim if you
received regulated advice to invest in P2P, and the adviser has since failed. Try the FSCS
investment protection checker here.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance.
If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn
more about FOS protection here.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about peer-to-peer lending (loan-based crowdfunding), visit the FCA's website here.
Am I eligible to apply for a loan?
All lenders have loan eligibility requirements, to be eligible to apply for a loan with us you must:
be a UK resident or have the right to reside in the UK throughout the loan duration
be employed, self- employed, in receipt of a pension or certain types of benefits
be at least 18 years old and no older than 75
have a guarantor (you do not need a guarantor to apply but you will need a suitable guarantor before the loan is approved)
not be in an IVA, Debt Management Plan or declared Bankrupt
Important information
Understand how our product works and what you need to consider before you apply.
Where can I get advice on my finances and options?
Money Advice Service free, unbiased and easy-to-access money tools, information and advice – www.moneyadviceservice.org.uk
MoneyHelper is a consumer-facing service, providing free and impartial money and pensions guidance for people all across the UK – www.moneyhelper.org.uk/en
If you require any further information about our product or services, please contact us.
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Peer-to-Peer Platform for borrowers
and lenders specialising in Guarantor Loans
Get a Loan
Get a Guarantor LoanBorrow up to £12,500 over up to
5 years with a guarantorREPRESENTATIVE 49.9% APR*
*Representative Example: £5,000 over 36 months, representative 49.9% APR fixed. Monthly payment £243.98. The interest is 17% per annum fixed and service fee is 24.17% per annum fixed. Interest payable £1,562.19 and service fee payable £2,221.09. Total repayable £8,783.28.
Your Guarantor is responsible for ensuring
the loan is paid if payments are missed.
Missed payments may impact your credit score.
A personal service
We talk to you in person to see how we can help – even if you’ve got CCJs or a poor credit record.
Simple & straightforward
Applying and getting your guarantor loans is a simple process and the cash can be with you on the same day, depending on your circumstances.
Money loaned has just hit our account. The whole process was quick and I’m very pleased with the service we’ve received from Guarantor My Loan. Considering my poor credit rating and the Cashback available at the end of the loan, the overall deal is very good value for money. I would highly recommend and would use again in the future if required. Thank you so much Ian/Chris…
Simon
I was in need of some extra money for home improvements. Due to moving home before xmas we were short on cash. Being unable to borrow from high street lenders I had no other option but to use a guarantor loan. An underwriter called Chris dealt with my case from the beginning to end and went the extra mile to make sure I could borrow the money I needed. I could not recommend him or the company enough and will most definitely be spreading the world. Customer service skills are amazing and the efficiency is perfect. Fantastic company!
Naomi Tennant
A genuinely honest company. I was very sceptical at first, however Chris, (the chap assigned to underwrite our loan) was beyond lovely. Explained everything fully, ensuring complete understanding from our part, non judgemental in terms of our previous credit history and very easy to complete the loan and the funds into our account within 24 hours from starting the process. The payments back are very reasonable compared to similar companies and I would highly recommend this company to friends. Many Thanks and definitely intend to work with them again in the future.
Angela McLaughlin
This company were great, didn’t push anything, really friendly, spoke to Ian and Chris. They not only sorted out loan in a couple of days but also talked me through every aspect, advised on something unrelated and explained how to work things on my laptop. Cannot recommend them more highly. Would give them 10 stars if I could.
Mrs Tina Casey
5 Star customer rating
Who can Guarantor My Loan?
Do you know someone who trusts your capability to repay the loan? Your guarantor can be a friend, colleague or family member and must also have a good credit record themselves to keep up repayments on your behalf if necessary.
Get the money you need in four simple steps
Apply online – it takes about 5 minutes
Find a guarantor
We’ll call you and your guarantor to discuss the loan and ensure that the repayments are affordable
Once your loan is approved, the cash will be paid through your guarantor.
Pay a clear & transparent rate for your loan
Apply with simple, manageable REPAYMENTS
REPRESENTATIVE 49.9% APR FIXED
Guarantor my loan
For Lenders
Guarantor My Loan enables you to benefit from a great return on your money. Your money is used to fund loans to selected borrowers who have a personal guarantor, who is a friend or family member, to guarantee to make the repayments if the borrower does not.
Peer to Peer lending is not covered by the Financial Services Compensation Scheme and your capital is at risk.
Seek independent financial advice
The information shown does not constitute advice or a personal recommendation, and therefore you should seek independent financial advice before deciding to lend.
The products explained
Income product
You can withdraw your monthly repayments as they are paid back by borrowers.
Term product
You can use the monthly repayments to re-lend to new borrowers.
The risks
Guarantor my Loan provides Guarantor Loans which are a type of unsecured loan that is backed by a guarantor, usually a friend or family member, who guarantees to make the loan repayments if the borrower fails to make them.
Your returns are not guaranteed as Borrowers and /or Guarantors may not make repayments on time and in full.
Your capital is at risk. It is also not protected by the Financial Compensation Scheme (FSCS).
**The actual return may be lower than anticipated if the capital is not immediately reinvested through the term and all of the loan repayments are not made on time or in full. **
*The rate of return shown is at 30th September 2015 and is for a 3 year term, before tax and assuming reinvestment throughout the term and all of the loan repayments being made on time and in full.*
As at 31st January 2016 our default rate was less than 1% and expected default rates are 4.2%.
Past performance is not a guarantee of the future.
You may apply to access your capital early, but this may not be possible in all circumstances and you may have to pay a fee.
Guarantor My Loan is an investment and not a deposit account.
You are responsible for accounting for any income tax, corporate or personal taxes that may be payable by you to appropriate authorities.
How we mitigate the risks
All borrowers and guarantors are carefully selected by trained individuals. Robust verification, credit checks and affordability assessments are completed prior to lending your money.
Lending is split over a minimum of 20 borrowers (maximum of 5% of the investment), so if one borrower cannot pay you are less likely to receive lower returns than those anticipated or lose all of your capital.
Missed payments are pursued by competent collectors who have expertise and knowledge in managing customer accounts.
Guarantor My Loan has set up a discretionary Reserve Fund, which is held in a separate client account.
The Reserve Fund has been set up to protect lenders capital and is funded monthly to reflect the growth of the loan book and anticipated level of bad debt, which you may be able to access, although it is not a guarantee.
A reserve fund claim does not include any interest that has accrued or may accrue.
Your money is held by us in a segregated bank account until it is lent out so that it does not form part of our assets and would not be available to our creditors in the event of our insolvency.
The benefits
You have a 14 day cooling-off period. You can withdraw your money anytime during the cooling-off period. You start earning interest as soon as your money is lent and the 14 day cooling off period has elapsed.
There are no fees payable by Lenders for making loans on the platform.
Guarantor My Loan will provide an annual statement to enable you to declare your income to the HMRC.
Once your money has been matched it is lent at a fixed rate for the term of the loan contract.
Typically around 8% – 10% return
Excellent returns
Invest for 36 months
Monthly or Term repayments
All loans are carefully underwritten by specialist underwriters
No hidden fees or charges
What is a Guarantor Loan?
Guarantor Loans are becoming more well-known these days, but confusion still exists around how Guarantor Loans work. For those who are looking into taking out loans or who have been asked to be a guarantor for someone, this guide should help to answer any questions or concerns you may have before you sign on the dotted line. It’s always wise to do your research before taking out any kind of credit to ensure that it’s the right solution for you.
How do Guarantor Loans work?
Guarantor loans are unique in that they use a ‘guarantor’ – who is usually a friend or family member of the person who wants to borrow the money – as a type of security on the loan. They are technically unsecured loans. Other unsecured loans rely solely on the borrower’s credit history in order to work out whether the money should be lent out, but guarantor loans look at the borrower’s and the guarantor’s credit history to assess the risk, so you may be more likely to be approved for guarantor loans.
The borrower and the guarantor both have to give the loan company some details and speak to someone on the phone in order to set up the loan. This helps to ensure that no one is ever named as a guarantor without them knowing. When the money is paid out, the borrower must then make monthly loan repayments for the full term of the loan. If they don’t, then the guarantor is asked to step in and make the payments on the borrower’s behalf. As long as the borrower pays the full instalment every month then the guarantor does not have to do anything.
Who are Guarantor Loans for?
As our guarantor loans look at both the borrower and the guarantor when considering an application, guarantor loans can be the best solution for those with a poor or no credit history, those who have not lived in the country for very long and those with CCJs or similar credit history issues. A lot of first time borrowers use our loans as a way to start building up a good credit history.
How much can you borrow with Guarantor Loans?
With Guarantor My Loan, you can borrow from £2,000 to £12,500 over 1 to 5 years. This means that you can tailor the loan amount and loan term in order to suit your needs. For example, you may want to borrow £3,000, but how much you pay back each month will depend on the loan term you choose. If you want to get the repayments out of the way within a year, then you’ll make 12 monthly payments of £309.19. For those who want to keep the repayment amount down and don’t mind paying it off over a longer period of time, then you can opt for longer. For example, borrowing £3,000 over 3 years will mean you have to make a monthly repayment of £146.39. Paying this same amount back over 5 years would mean monthly payments of £118.59. You can use the handy sliders on our website to play around with amounts and loan terms before you apply in order to see what combination would be best for you and to see how much you could borrow, subject to our affordability checks.
How long you can borrow for?
Depending on the amount you want to borrow, you can opt to pay back your loan from 12 months to 60 months. As mentioned above, the length of time it takes to pay off your loan affects the amount you’ll have to pay as monthly instalments. It will also affect the overall cost of your loan.
How long does it take to apply?
The application can take just 5 minutes. Once we are happy that your application is complete we may be able to get the money to you on the same day.
What happens if the Guarantor Loan instalments aren’t paid?
When a loan instalment doesn’t come in on time, we will notify the borrower and the guarantor so that they are aware. We will always try to find a solution with the borrower before discussing payment of the loan with the Guarantor. If we are not able to collect a payment from the borrower or a solution cannot be found, then the guarantor will be contacted to make the payment. If a payment is made by the guarantor in this way, we won’t assume that will be the way it is paid from then onwards and will always leave the guarantor as a last resort.
For more information please refer to ‘What if I miss a payment?’
Who can be a Guarantor for a Loan?
Your guarantor should be chosen carefully, as they must fit the following criteria – have a good credit history and have enough income each month to cover the loan repayments just in case they are asked to step in. They must also have an active UK bank account and be at least 21 years old.
Many people choose a close friend or family member (such as a parent or sibling) to act as a guarantor on their guarantor loans. As long as they fit the criteria above, have passed all security checks and have the means to pay the loan then they can be your guarantor. If you have any additional questions about what it means to be a guarantor or about any aspect of the guarantor loans, please contact us on 01603 391013.
You’re in control of your loan
With multiple repayment methods and payment frequencies available, you have complete control over how and when you repay your loan. If you are paid fortnightly, or weekly and want to repay your loan the same way, no problem!
What does the Guarantor do?
A guarantor will initially need to be involved in the application process by filling out their side of the application and answering a few questions with us over the phone. After this, how involved the guarantor is in the guarantor loans process is dependent on whether the loan instalments are paid in full and on time. The guarantor will not be required to pay any money to us unless the loan instalments are not paid in full or we cannot come to a payment arrangement with the borrower. .
Who do other people use as a Guarantor on their Guarantor Loans? Most of our customers tend to use a parent or other close family member as their guarantor for their loans, as they are more likely to fit the criteria of being a homeowner and having a good credit history. Close family members also often know and trust each other well, and can get in touch with each other very easily. Other popular guarantors for loans include good friends and colleagues – in short, the guarantor for loans should know and trust you well, and be comfortable that you’ll be able to repay the monthly instalments.
How do I approach a potential Guarantor? Whether you approach your guarantor face-to-face, over the phone or via the internet, it’s important to set aside enough time to talk through the process with them and give them a chance to ask questions. Acting as a guarantor is not something to be taken lightly, so give them time to think about being a guarantor and don’t be offended if they say no. If they would like further information from us then they are welcome to contact us on 01603 391013 or email us at customerservices@guarantormyloan.co.uk if they would like further information about what is involved. It may be a good idea to have more than one person in mind just in case.
What does my Guarantor have to do if I miss a payment? If a payment is missed for any reason, we will contact you and the guarantor. As we prefer to receive loan instalments via Direct Debit, you may not realise that a payment has not gone through properly. If this happens, we will make you both aware, so that the issue can be easily resolved, If the payment cannot be made, we will try to find a solution with you first. If we can’t get hold of you or if we are unable to come to an arrangement with you, we’ll discuss making the payment with your guarantor. We will review this on a month-by-month basis. You should only enter into a loan if you are both happy that the loan is affordable and that you both understand you’ll be committed to paying the instalments for the full term of the loan. If you know there is going to be a problem, contact us sooner rather than later. If you have any questions about how guarantor loans work or what is required of the guarantor, then we’d be happy to speak to either of you before an application is made for a guarantor loan.
About Guarantor My Loan, who are we?
Welcome to GuarantorMyLoan – we are a Peer to Peer lending platform, specialising in offering credit to those with a less-than-perfect credit history. We are able to offer guarantor loans from £2,000 to £12,500, payable over a 1 – 5 year period. Payments can be made on a monthly or weekly basis, on a date we will agree on with you. This ensures the loan is manageable as it breaks it up into regular, affordable payments. What’s more, making regular payments like this on guarantor loans will also help to give your credit file a bit of a boost, as it shows you’re able to manage credit properly.
Choosing the best Guarantor Loans Lender for you
While we are one of only a few Guarantor Lenders available, finding the right loan provider for you can still take time and research on your part. As a responsible lender, we will only offer a loan if we believe it is the right product for you. We’re authorised and regulated by the Financial Conduct Authority, and we’re proud to be a guarantor loan platform dedicated to treating our customers fairly. Take a look around the site and learn a little more about our loans and what we do – you can also see what other customers have to say by visiting TrustPilot. If you have a question give us a call on 01603 391013 – our friendly and knowledgeable advisors will be happy to help.
Typically around 8% – 10% return
Excellent returns
Invest for 36 months
Monthly or Term repayments
All loans are carefully underwritten by specialist underwriters
No hidden fees or charges