Best guarantor loans
*Representative Example £3,000 over 3 years, representative 48.9% APR fixed. Monthly payment £145.17. The interest is 10% per annum fixed and service fee is 30.48% per annum fixed. Interest payable £549.95 and service fee payable £1,676.17. Total repayable £5,226.12
Best Guarantor Loans
With a number of options around Guarantor Loans, what will make the best guarantor loan for you.
We look at some of features and benefits of Guarantor Loans
If you’re looking for a guarantor loan, it’s important to ensure you’re dealing with the right lender for your needs and circumstances. There are a number of guarantor lenders operating in the UK at the moment, each with their own benefits and unique features, so finding a good fit for you may take a little research on your part. In this article, we’ll demonstrate what you should be looking out for.
The best guarantor loans are the ones which work for both you and the lender. Some guarantor lenders have stricter criteria than others, and the amount they will charge in order to lend to you (this is shown as loan interest and will be presented as a percentage of the full loan amount) can vary depending on your desired loan amount and your situation. Generally speaking, guarantor lenders tend to lend at around 40% - 60% APR, so it’s important to consider how much you will be paying back overall.
Opting for the cheapest loan (where the percentage of APR is lowest) is what many people use to determine the best guarantor loan for them, but while keeping costs down is important; it’s not the be all and end all when it comes to taking out a guarantor loan. Unique benefits, how comfortable you feel with the lender and their fair lending practices should all be considered with the same, if not more importance than the overall cost. For example, Guarantor My Loan is one of the main guarantor lenders in the market. They offer a unique cashback benefit, whereby if you pay each of your loan installments in full and on time, they’ll give you 1 month’s payment back at the end of the loan as a thank you. In some cases, this can be over £200, so it’s worth considering things like this when choosing the right lender for you.
Generally speaking, you should be looking at the credentials of the lender before anything else. We’ll cover this in more detail in the next section, but it’s important to keep in mind how the lender operates, as this can have the biggest impact on your chances of approval and the success of the loan agreement.
As mentioned above, the credentials of a guarantor lender is the first thing you need to check. They must be registered with the Financial Conduct Authority (the FCA) by law, so it’s important that you confirm this before moving forwards with an application. Any lender operating without FCA approval is not operating within the law and certainly would not be offering the best guarantor loans. Any lender operating outside of the law is not subject to the same stringent rules and regulations, which means your finances and personal details may not be treated with respect. You should find the lender’s FCA Interim Licence number at the bottom of their website. This is often accompanied by their registered business number and an official address. If you can’t see any of this information then you may want to dig deeper to ensure the lender is operating within legal boundaries. This not only protects you, but it also protects others from fraud or other financial problems.
The best lenders will ask for some supporting information from you as part of the loan application process. It’s important not to shy away from this, and if a lender asks for very little information before agreeing to pay out a loan to you, you need to ask why. Fair lending means that you will not be set up with a loan which you cannot afford to pay back, and that your identity and your eligibility for the loan are checked in order to prevent fraud and protect all customers. The best guarantor loans are paid out when the lender, the borrower and the guarantor are all happy that the loan is manageable and affordable; something which is worked out by performing basic checks with your permission.
When you’ve taken a look at the various things different lenders have to offer and you’ve made your decision on who you want to apply to, it’s important to apply with them directly. Many guarantor lenders will accept direct applications as well as ones from brokers or comparison websites. Applying for a guarantor loan through another site like this is fine, but it does mean that you may pay more overall. By going to the lender directly, you cut out the middle man and therefore lower costs, which is why you may get the loan at a more favourable rate by going directly to the lender.
Many people like to check out the direct website of lenders before beginning their application, which is a wise move when looking for the best guarantor loan for you. Getting a feel for the company, checking their credentials and reading up on their way of doing things is the only way to get a full picture before signing on the dotted line. While most lenders will do everything online, both you and your guarantor will need to speak to someone on the phone to confirm a few details. This helps to prevent fraud and other issues. You should take this opportunity to ask as many questions as possible about the loan to ensure you’re still comfortable. Although the lender will have the final say in whether to lend to you or not, it’s also important that you’re happy to borrow from them. You have to trust them and be able to communicate with them easily. If you find this difficult upon initial contact, then this particular lender may not have the best loan for you.
Entering into a loan agreement means that you’ll be connected to the lender for the full term of the loan, so being comfortable with their customer service and how they operate their lending is something which you should aim for. By going directly to the lender, you can work out whether they’re right for you much faster than if you were to go through a broker or comparison website.
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Guarantor My Loan is a Peer to Peer lending platform that matches those wanting to lend with those wanting to borrow.
We specialise in arranging Guarantor Loans for customers and have been lending since August 2014.
You can visit our Lender FAQs to find out more about lending on our platform and how to become a lender. If you have any further questions please call us 01603 561110.
You can visit our Borrow FAQs to find out more about borrowing on our platform and to start the application process visit our apply page. If you have any further questions please call us 01603 561110.
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