Who can be a guarantor?
WHAT DOES A GUARANTOR DO?
In the past, before lenders judged the merits of a loan application on the basis of automated credit checks and scoring, a more personal approach was common.
The bank or lender would often ask for a guarantor as security – just like many mortgage companies and landlords do today. It’s a time-proven system based on talking to people in person. and on trust.
In plain language, being a guarantor means that if the borrower has problems with repayments, the guarantor will pay them on their behalf.
Your Guarantor must:
- Be aged between 21 and 75
- Be able to take over your repayments if needed
- Know and trust you well
- Have a good credit record
Once we’ve received a loan application we will contact the guarantor by phone to ensure that they are comfortable with the repayment arrangements.
They must be able to cover the cost (should you be unable to) in addition to their own outgoings, so it is a commitment that is not to be taken lightly.