We offer guarantor loans to UK residents. A guarantor loan is similar to other types of unsecured loans in that you do not need to have a property to offer as security for the loan. This means that if you didn’t pay repay your loan for any reason, then the loan company could repossess your house, sell it and then get their loan back from you the proceeds of the house sale. Unsecured loans like tenant loans, guarantor loans and car loans are often quicker and simpler to apply and obtain and the whole process is fairly painless as long as you are aware of the process and what you need to do to help push the loan through.
The only downside of an unsecured loan is that because there is no security such as a house being offered to the lender, obtaining an unsecured loan can be a lot more difficult because if you don’t repay your loan, the lender has no way of getting their money back. This means that banks and loan providers often make sure that the only people they lend money to are people with a good credit history as anyone with bad credit will simply get turned away for being a bad risk
However, if you applied for an unsecured loan with a guarantor, then you are almost guaranteed to be accepted because the credit check is carried out in the guarantor, not the borrower, so even if you applied for a loan and you had terrible credit with a history of missed payments on cards and other loans then the lender will still accept you simply because if you don’t repay the loan for any reason, then it will be the guarantor, not the borrower who has to repay the total loan. So in effect, a guarantor loan becomes a completely risk free product for the lender.
There are certain stipulations as you would expect, if you are looking to apply for a loan with a guarantor. The guarantor must be in full time employment or have a regular passive income like a pension and they must have a decent credit history with none of the issues regarding poor credit that I mentioned earlier. Then all that happens is that the borrower gets the loan paid into their bank account and makes the payments every month and the only time that the guarantor comes into the equation is when the borrower can not or will not repay the loan. Then it falls to the guarantor to repay the full loan amount outstanding.
Literally anyone can become a guarantor and this type of loan is becoming so much more popular because more people are suffering frm bad credit and general credit problems. It can be a family member, friend, colleague or even a neighbour, in fact anyone can be put forward as long as they agree to the conditions of the contract that they are entering into, however, most guarantors are aware of the possible pitfalls before they sign up to any loan agreement.