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Compare Guarantor Loans

Compare Guarantor Loans side-by-side with ease. Guarantor Loans will allow young people or people with credit issues to access a loan where other types of lenders would have declined.

Sponsored Product

Duo - Tenant and Home Owner Guarantor Loan

Duo offers the ability for someone who is a tenant to act as Guarantor on a loan. Most other providers require the Guarantor to be a Home Owner.

Guarantor Loans

Lender
Product
Representative APR
Min Loan
Max Loan
Min Term
Max Term
More Info
Duo Guarantor Loans
39.9%
£1,000
£7,500
24 Months
60 Months
Representative example: Borrowing £1000 over 13 months. Repaying £93.03 per month. Total repayable £1209.39. Representative 39.9% APR (Variable). Interest rate per annum 34.0% (Variable)
UK Credit Ltd Home Owner Guarantor Loan
39.9%
£1,000
£7,500
12 Months
60 Months
Representative Example: £4000 over 4 years, representative 39.9% APR fixed. Monthly payment £153.60. Annual interest rate 34.05% fixed. Interest payable £3372.80. Total repayable £7372.80.
UK Trust Loans Guarantor Loan
49.9%
£500
£7,500
12 Months
60 Months
Representative Example: Borrow £7,500.00 over 60 months, Repaying £296.49 per month = Total Repayable £17,789.41 Interest Rate: 41.16% Fixed. There are no other charges included in the total charge for credit.
BuddyLoans Guarantor Loan
49.9%
£1,000
£7,500
12 Months
60 Months
Representative Example: You want to borrow £7,500 over a repayment period of 12 months. Repaying £772.94 per month. Total repayable £9,381.67. Interest rate 41.16% (fixed). Representative APR 49.9% (variable)
Amigo Guarantor Loan
Amigo are a lender and not a broker. Accepts CCJ’s and defaults. Provides quick payouts to your bank account. Won the award for Best Credit Builder 2017. Borrow from as little as £500 - £10k and repay over a term of 12 months to 5 years.
49.9%
£500
£10,000
12 Months
5 Years
Representative Example: Borrowing £5000 over 60 months, repaying £197.62 per month, total repayable £11,857.20. Interest rate 49.9% (variable).
Hero Loans Guarantor Loan
44.9%
£1,000
£5,000
12 Months
60 Months
Representative Example: Borrowing £1000 over 36 months Repaying £46.76 per month. Total repayable £1683.36 Interest rate 37.67%. Representative 44.90% APR (variable)
Consollo Guarantor Loan
47.5%
£1,000
£7,500
12 Months
60 Months
Borrowing £3,000 over 24 months at a representative APR of 47.5% and an annual interest rate of 39.50% (fixed) you would pay £182.75 per month, total charge for credit will be £1,386.00. Total amount repayable is £4,386.00
GuarantorMyLoan
Guarantors get £150 cash back at end of loan.
48.9%
£1,000
£5,000
12 Months
60 Months
Representative Example: £3,000 over 3 years, representative 48.9% APR fixed. Monthly payment £145.17. The interest is 10% per annum fixed and service fee is 30.46% per annum fixed. Interest payable £549.95 and service fee payable £1,676.24. Total repayable £5,226.19.
UK Credit Ltd Tenant Guarantor Loan
54.9%
£1,000
£4,000
12 Months
48 Months
Representative Example: £3,000 over 3 years, representative 48.9% APR fixed. Monthly payment £145.17. The interest is 10% per annum fixed and service fee is 30.46% per annum fixed. Interest payable £549.95 and service fee payable £1,676.24. Total repayable £5,226.19.
LendFair Guarantor Loan
48.0%
£500
£5,000
6 Months
60 Months
Representative Example: Borrow £2800 over 36 months repaying £134.45 a month. Total repayable £4840.20. Representative APR 48.0% fixed. Interest rate 48.0% fixed.

 

Guarantor Loans Explained

If you don’t have an established credit history or if you have a history of bad credit, getting a loan can prove to be a challenge. If lenders do decide to take a risk in lending to you, it’s likely they’ll apply a high rate of interest that could lead to much higher costs.

Until fairly recently, it’s been tricky to negotiate round this problem, and it’s one of the reasons why there’s been such high demand for expensive payday loans. But there’s a slightly different type of loan that could help you to get around this problem at much more affordable levels.
Guarantor loans are relatively new to the market. They are a type of unsecured loan that allows a second person to act as a guarantor. So, where you have a friend or relative who is prepared to vouch for you, you’ll be able to lend on the basis of their credit history rather than your own.

How do Guarantor Loans work?

With a guarantor loan, you’ll be able to borrow anywhere between £1,000 and £10,000 over a term of between one and five years. The rate of interest will be higher than a standard personal loan, but it’ll be much lower than high-cost alternatives such as payday loans, and it’s also unlikely that you’ll face any up-front changes or arrangement fees.

Who can apply for a guarantor loan?

Guarantor loans are available to UK adults over the age of 18. Applicants for a loan will need a UK bank account in order to make repayments.

Who should my guarantor be?

Your guarantor can be anybody that isn’t financially linked to you (such as your spouse, if you share accounts or credit in both names). For the best chance of being accepted, your guarantor should normally be over the age of 21, with a good credit history, and also a UK homeowner. This will reassure a lender that they will be able to recoup the funds from your guarantor should you default on your loan.

These are not rigid criteria, however. Some lenders may allow you to present a guarantor who is not a property owner, and some will be able to process your claims more quickly – perhaps even on the same day. But you may end up paying more for this flexibility.

What are the advantages of a guarantor loan?

If you have a poor credit history or no credit history at all, guarantor loans will allow you to access larger sums at lower costs than you might find elsewhere. As with other credit-building products, a guarantor loan will help to strengthen your credit history and demonstrate that you a responsible borrower at the same time – provided that you make your repayments on time.

What should I watch out for?

With numerous companies now offering guarantor loans, it’s important to compare if you want to secure the best deal. You’ll have to consider the following when you’re searching for a guarantor loan:

Any conditions set out by the lender about who your guarantor can be (e.g. homeowner).
The interest rate charged by the lender.
Any fees or charges involved.

In summary:

Guarantor loans are not the cheapest form of credit available. But for the thousands of people out there who feel that a payday loan is their only route to credit – it’s not.

If you have the right person ready to vouch for you, these loans could be an ideal solution, and the route to securing cheaper credit for yourself in the future.