Welcome to Guarantor Loans UK, the guarantor loan broker that will compare the market for you and ensure that your application goes to a lender most likely to help you. Even better, we do all of this at absolutely no charge to you, the customer. Have you applied directly with a lender before?
Have you sent all your documents in and gone through an in depth income and expenditure only for them to refuse to lend you the money at the last minute? We understand how frustrating this can be.
We work very closely with our market wide lender panel to ensure you don’t waste your time when applying through us. We have an intrinsic understanding of different lenders criteria, and after a quick discussion on the phone (as long as you are honest with us) we will match you up and if all goes well you could get the money in your account on the same day you speak to us.
We’re different from other brokers because;
- We’ll talk to you to find about your individual circumstances and understand exactly what you want
- We’ll search the market and talk you through all your options, letting you choose the option that works best for you
- We’ll walk you through the entire process, explaining what the lender will need and why and always being there to answer any questions you may have
- We’ll never charge you a penny for this service – whether you decide to take out a loan is entirely up to you. If you do take out a loan that we’ve found for you we’ll get paid a commission by the lender but the choice is entirely up to you and we won’t hassle you to take anything you don’t want to.
Guarantor loans are a form of UK credit that really grew in popularity when a lot of instalment type lenders moved out of the market around 2007/2008. The whole idea was to go back to a more traditional, trust based decision making process, instead of relying on credit scoring and “computer says no” technology. By asking a friend or family member to back the application, the lender is putting faith in that relationship and basically saying “I am willing to overlook your less than perfect credit history because your Guarantor, who has great credit, is vouching for you”. This is backed up by the security of the guarantor being willing to step in if the borrower happens to miss a payment.
If you’ve looked into getting an instalment loan but you have bad credit then you’ll know that these can be expensive – this is because a bad credit file makes the applicant a higher risk to the lender. To allow for this risk the lender puts up the price i.e. their interest rate. With Guarantor loans the guarantor is effectively reducing that risk by saying that they vouch for you – because of this the lender is able to offer the loan at a lower price.
Guarantor loans are also fantastic for rebuilding credit. Guarantor lenders, like virtually all other lenders, report to one or more of the credit agencies (Equifax, Call Credit and Experian). This means they will register your loan with them and then each month will tell the agency that you’ve made your repayment. Other lenders use these credit reports when assessing future applications – having a long period of payments made on-time looks great to prospective lenders, credit card providers, mobile phone providers or mortgage companies.
As discussed above, the fact that your application is supported by a Guarantor means that the lender is less reliant on your credit score when assessing your application. This means that if your Guarantor has a good credit history you are much more likely to have your application accepted. It doesn’t matter if you’ve already been turned down by everyone from the High Street lenders to the Payday loan companies – the Guarantor Lenders have a different set of priorities.
Guarantor Loans range from £500 all the way up to £12,000 with loan terms that vary from 1 year to 7 years – so there really is a wide range to choose from to find the one that suits you best.
Relationship to you – the Guarantor can be anybody that knows you and is willing to vouch for you and your loan application. They can be a friend, relative, neighbour, colleague, employer – anybody really. The lenders really don’t mind what the relationship is, so long as the Guarantor is happy to support your application.
Homeowner or Tenant? – this is one of the big changes in the last year as your Guarantor no longer has to be a Homeowner. For either a Tenant or a Homeowner the main thing is that your Guarantor has a good credit history and can afford the loan repayments if called upon to do so. It is important to make sure the guarantor has enough income to cover the repayments if necessary (this is known as “affordability”). So be sure to make sure the loan repayments are spread out over a suitable period of time.
A Homeowner Guarantor will generally allow you to borrow more money and at a cheaper interest rate. Tenant guarantor loans are generally available from £500 to £3,000 whereas with a Homeowner Guarantor the loan size can increase to £12,000.
Employed? – your Guarantor doesn’t necessarily have to be employed but they will need to show they have a good and reliable source of income. This could be from employment, self-employment or a pension.
Guarantor loans are generally a great way to get the money you need whether you have no credit history, a poor credit history, or perhaps have no credit history at all. Maybe you are new to the country and most lenders are closing the door on you.
Here at Guarantor Loans UK we’re here to help regardless of your circumstances. We’ll go through your personal circumstances and give you honest and friendly feedback on the products available and the options you have to choose from. We can help explain anything that’s not clear and are happy to explain the process to your Guarantor if you wish.
We offer this service totally free to you and with no obligation – if you don’t like what we find for you then you are absolutely free to walk away. You can apply online here or you can call us directly, we don’t use premium rate numbers and are happy to call you straight back.