In simple words, a guarantor is a person known to the borrower personally, and is willing to guarantee the borrowers’ ability to repay the loan. A guarantor must therefore:
Prior to asking someone to stand as guarantor for your guarantor loan application, it’s worth checking that the person you have in mind would meet the lending criteria. We are Guarantor Loan specialists, and this means your application must be supported by an eligible guarantor to be successful.
Frequently Asked Questions
What does my guarantor do?
The guarantor will be required to make the monthly payments if the borrower is unable to. It's important to find the right guarantor who can do this. If in the rare occasion that you cannot make your payment, we will contact your guarantor to make up any arrears on the account. If you never miss a payment your Guarantor will never be contacted.
Who can I ask to be a Guarantor?
We find that friends, family or even work colleagues are usually the most approachable. Anyone can stand as guarantor providing they are a homeowner, but don’t worry the loan is not secured against their property.
It is likely that a person’s decision to stand as your guarantor will be based on their trust in your repayment ability; this is why we recommend choosing someone you know very well. It's important to discuss the loan application fully with your guarantor, even though talking to someone about your finances isn’t easy especially if you have had problems in the past, however misleading someone into being a guarantor could put your relationship in jeopardy.
What’s the risk?
If the borrower is unable to repay the loan, the guarantor will take the responsibility of making repayments for the arrears. Being a responsible lender, we carry out affordability checks on both the guarantor and borrower to satisfy ourselves that the guarantor can afford the repayment amount alongside all their other current financial commitments. Even if we feel that the loan is affordable, we give the Guarantor the final say- the money will be transferred to the guarantor’s bank account and can be returned if they have any doubts. We suggest you check in detail how your loan agreement for the terms on cancellation.
What is guarantor my loan?
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