What is a Guarantor Loan?

What is a Guarantor Loan?

A Guarantor Loan is like a regular loan except there is a second person liable for the debt if the borrower doesn't pay - this is the Guarantor. Ordinarily it is hoped they will never have to do anything but in the event that the borrower can't or won't pay, the guarantor is required to make the payment on behalf of the borrower.

Who can get a Guarantor loan?

To get a Guarantor loan you must be:

  • Resident in the UK for the past 2 years
  • Aged 18 or over
  • In receipt of an income
  • With a credit score that meets the minimum criteria (this standard is not as high as it is for unsecured loans but there is a level that needs to be attained)

Who can be a Guarantor for a loan?

The guarantor for a loan can be anyone resident in the UK aged 25 or over, in receipt of an income, with a strong credit score who is not your partner/spouse. For larger loans they will also have to be a homeowner (usually only for loans over £5,000)

Who is the best Guarantor Loan company in the UK?

There are many Guarantor Loan lenders in the UK but at Choice Loans we can access several of them to bring you the best rate, all from filling in just one form. If you need a Guarantor Loan, we'd be happy to help.