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Welcome to Compare Guarantor Loans

Compare, Select, Apply – Simple!

Guarantor loans are rapidly becoming a mainstream unsecured borrowing option in the UK. New lenders are arriving in the market at an ever increasing pace. However, the provision of information about guarantor loans and the lenders who operate in the market is limited. It’s become obvious that what is needed is a dedicated website to help consumers understand what guarantor loans are and compare lenders in the market. That is why we have launched CompareGuarantorLoans.com - it’s the best way to compare guarantor loans.

How Can Compare Guarantor Loans Help You?

We’ve built the website around the things that you are most likely to want to know or do when looking for a guarantor loan:

  • Comparison Tables (£50 to £500 & £500 to £10,000) of the major lenders that quickly explain the benefits and highlight the differences. We also include lender ratings from our customers & their most recent reviews – find this information on the lender pages accessible from these tables.

    Our comprehensive comparison tables for guarantor loans

    Use our comparison tables to select lenders and then apply to them in one go

  • Application Process that allows you to select lenders you’d like to apply to simultaneously through one form (£50 to £500 & £500 to £10,000)
  • Instant Lending decisions – our live links with lenders mean we can give you instant in principle lending decisions.
  • Fast E-Signature Service – some lenders provide an e-signature service meaning there is the option of an extremely fast conclusion to your application process. It is possible to get up to £500 in 1 hour, and up to £10,000 in 24 hours.
  • Blog & Discussion Forum that enable you to dig deeper into guarantor loans and the reputation of individual lenders

If you think you need other information to allow you to compare guarantor loans then let us know what it is and we’ll see what we can do.

Our Range of Information Resources

  • Our Information Videos – we’ve created a series of videos that explain aspects of guarantor loans.
  • Our FAQs – may be what you need is here. And if you can’t find it try the search function within our forum area.
  • Our Guide to Guarantor Loans – a downloadable document that covers much of what you’ll need to know.
  • Our Blog – we will be regularly writing about the guarantor loan market in the UK focusing in particular on developments driven by lenders. You can add your comments too.
  • Our Forum – a great place to hang out and find out what questions and opinions people have about guarantor loans. May be you have a question you’d like to post, or indeed may be you have an answer for someone else’s question.

We’re pretty sure that you’ll be able to compare guarantor loans a lot more easily with this information to hand. You’re in exactly the right place to find out everything you need to know about guarantor loans.

Reviews of CompareGuarantorLoans.com

Since we launched we’ve been receiving the sort of feedback that we could only have dreamed of. People love our information resources, the ability to apply to multiple lenders simultaneously while only having to complete one form, and the instant lender responses.

Since we launched Compare-Guarantor-Loans.co.uk has scored 4.5 out of 5 based on 143 ratings & user reviews.

 

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Duo Loans from Everyday Loans joins Compare Guarantor Loans

Everyday Loans, who are a big name in the near-prime & sub-prime UK unsecured lending market, have just launched Duo Loans their new guarantor loan product. Duo Loans aims to make its mark by charging less than the average for a guarantor loan. It’s representative APR is 44.8%. You will need to provide a guarantor who is a UK homeowner, so no chance of having a tenant or someone living with a parent or friend helping you out.

Duo Loans logo

One of the lowest APRs available for a guarantor loan.

These are the key features of the Duo Loans guarantor loan:

  • Borrow from £1000 to £5000
  • Repay over 13 months to 5 years
  • Representative APR 44.8%
  • Never charge any fees for late repayments or for arranging your loan
  • You guarantor must be a UK homeowner

So, Duo Loans offer one of the lowest APRs of any guarantor loan provider but you must remember that you must have a guarantor who is a homeowner. There is no option of a non-homeowner.

Use our comparison tables to see how Duo Loan stacks up against numerous other lenders.

 

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George Banco aims to shake up the UK guarantor loan market

The UK guarantor loan market sees the arrival of another new lender – George Banco. As with First Banco (no relation!) they can accept guarantors who do not own their home and they don’t charge any extra if your guarantor isn’t a homeowner. You can get full details about their loan here. Keep in mind that while George Banco doesn’t appear to charge a different rate for non homeowner guarantors there are other lenders who will charge less than George Banco if your guarantor is a homeowner – so it pays to shop around. That’s why looking at our comparison pagesis a great idea!

George Banco logo

Is your guarantor a non-homeowner? Then George Banco may be able to help you.

George Banco Loans in Summary

  • Borrow from £1000 to £5000
  • Repay over 12 to 60 months
  • Can accept non-homeowners / tenants as guarantors (inc. those living with friends or family)
  • Representative APR 62% – same for guarantors regardless of whether they are a homeowner or not.
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More tenant guarantor loans lenders join the UK market

Tenant Guarantor Loans of up to £5000 are available

The UK guarantor loans market going from strength to strength. We have had a number of new lenders join our comparison pages recently who can accept tenant guarantors. Not only that but the maximum loan value available for tenant guarantor loans has risen to £5000 – only a year ago this was the maximum loan value available if you had a homeowner as a guarantor! Things are developing fast.

The other good news is that the APRs for tenant guarantor loans are falling. The representative APR used to be 99% but now lenders have representative APRs in the range 60% to 70%. We expect the margin between these and the homeowner guarantor loans to reduce over time as competition increases.

Use our tables to compare tenant guarantor loans and apply to them instantly.

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UK Trust Loans join UK guarantor loan market with £3000 offering

If you need a guarantor loan of £1500 to £3000 for 12 to 36 months then you have yet another guarantor lender to consider. UK Trust Loans Ltd has entered the market and are making a strong pitch as a truly “responsible lender”. They genuinely don’t want you to take on debt if this will simply cause you financial hardship down the line.

Giving you a helping hand and taking responsible lending seriously

Only time will tell if they can live up to their promises, but it seems sensible to give them the benefit of the doubt. There are plenty of lenders now who offer loans in the range that UK Trust Loans do so it’s worth looking at all the alternatives before you decide who to apply to. Check out our comparison page now for alternative lenders.

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GuarantorUs Loans bring unsecured lending out of the dark ages

Oakbrook Finance Ltd, whose consumer finance business has grown through point of sale finance, has recently launched GuarantorUs Loans to compete in the rapidly growing UK guarantor loans market. GuarantorUs Loans offers between £1000 and £5000 for periods of 12 to 60 months. Other guarantor lenders do offer larger amounts over longer periods but its APR of 45% is the leading rate in the guarantor loan sector.

Not the dinosaur lender you might imagine them to be

They have clearly spent a lot of time perfecting their website and we expect GuarantorUs Loans to be a strong player in this market. As ever it makes sense to compare their offering with those of their competitors so check out our comparison pages now!

 

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Buddy Loans launches guarantor loans with a £7500 maximum

Buddy Loans has joined the rapidly growing UK guarantor loans market and is offering loans of up to £7500. Its loans are a little more expensive than Amigo’s with a representative APR of 54.4% – in fact this makes it more expensive than most guarantor loans lenders currently in the market.

Arriving in the market with a “Bang!”

In spite of this rate disadvantage it sounds like Buddy Loans is intending to arrive in the market with a bang rather than a whimper, so expect to see TV advertising soon.

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TFS Loans now lending to BT postcodes

TFS Loans has announced that it is now offering guarantor loans in Northern Ireland.

TFS Loans logo

If you live in a BT postcode TFS Loans are now able to lend to you.

This means that if you live in a BT postcode you now have access to unsecured loans with these general terms:

  • £1,000 to £10,000 unsecured even if you have a poor credit history
  • Spread your loan repayments over any period between 24 and 72 months
  • Full online e-signature service meaning it is possible to complete your loan application and get your cash in as little time as 24 hours
  • Representative APR of 48.8%

UK Credit also offer guarantor loans to BT post codes in Northern Ireland. You can quickly find out if TFS Loans and UK Credit will lend to you in principle by selecting them from our list of lenders and submitting some brief information to them via our online enquiry service. In 60 seconds you’ll have the answer you need.

 

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How to choose a guarantor for your loan

For many people getting a loan can be difficult, especially if you have a bad credit history or no credit history at all. However, there are a range of lending choices available to you.

One increasingly popular solution is a ‘guarantor loan’. Instead of being credit scored, you provide a ‘guarantor’ for the loan who agrees to make your payments if you don’t. But, what is a guarantor? What are their responsibilities? And how do you choose a guarantor for your loan? Keep reading for the answers to these questions and more.

What is a guarantor?

When you apply for a guarantor loan the loan is in your name and your credit record will show your payments. However, to be approved for the loan you will need to provide a guarantor.

Being a Guarantor

A guarantor is someone who agrees to pay the loan back if you can’t. Instead of checking your credit history

A guarantor is not a new idea. For years, many mortgages have required guarantors and it was the way many loans worked before the introduction of computerised credit scoring; the lender takes the view that your guarantor trusts you to make the payments, and therefore so does the lender.

What are a guarantor’s responsibilities?

Your guarantor effectively promises to make the loan repayments if you don’t pay.

If you fail to make a payment it becomes the guarantor’s responsibility to keep up the payments until the loan is repaid. This is why the guarantor needs to be able to afford the repayments as well as their own commitments (more later).

Criteria for a guarantor

The criteria for the guarantor depend on the size of the loan required and the individual requirements of a lender. However, to be a guarantor the person must typically:

  • Be able to afford to make repayments if you don’t pay
  • Be aged between 18 and 75
  • Have a good credit history

The guarantor will have to pay the loan back if you can’t. This means that it is important that they can afford the monthly payments as well as having enough money to meet their own financial commitments.

Guarantors DON’T have to be Homeowners!

Originally lenders of loans over £500 needed a guarantor to be a homeowner. But this is no longer always the case. While some lenders still insist on it there are a growing number who do not. In fact there are lenders who could provide up to £5000 even if your guarantor is a tenant, is living with friends or indeed living with other members of their family.

Finding the right guarantor

In theory, anyone who fits the above criteria can be the guarantor for your loan. This means you can choose:

  • A friend
  • A family member
  • A colleague
  • Your landlord
  • Your employer

In reality, the guarantor is often someone that you know very well. That is because they know and trust you the most. They are also best placed to determine whether you are likely to keep up the repayments to your loan. If you don’t, of course, they become liable for your debt.

Most people look to members of their close family (parents, a brother or sister, a grandparent or perhaps an aunt or uncle) in the first instance. There is no issue with your guarantor sharing the same surname as you.

After this, most people then turn to a very good friend or perhaps a work colleague. You may also consider asking your employer or landlord if you know them very well.

When choosing your guarantor it is worth thinking carefully about who you ask. By entering into this agreement you may jeopardise your relationship if you do end up not maintaining your repayments.

Similarly, it is important that you don’t apply for money you know you can’t repay as you will be exposing your guarantor to a significant risk and this may put a huge strain on your relationship. Stepping in to make your payments could affect your guarantor’s own financial security and so if you think this could be an issue then it may be best to avoid borrowing or to consider another guarantor.

One simple way to think about a possible guarantor is to consider whether you think they would be happy to lend money to you themselves. If the answer is ‘yes’, they will probably also be prepared to guarantee your loan.

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Are guarantor loans safer than payday loans?

You may be a little confused over the differences between guarantor loans and payday loans. At Compare Guarantor Loans we regularly hear questions on this subject and here are some hopefully helpful responses.

What are guarantor loans?

These are an innovative product aimed specifically at providing finance of £50-£10,000 to borrowers without the need for security or credit scoring checks.

The basic idea is extremely simple.  If someone such as a family member, close friend or business colleague is willing to guarantee your borrowing in the event you are unable to keep repaying the loan, then that will give increased confidence to lenders.

That in turn means they may not require the same degree of comfort about your own personal financial position as would be the case with a conventional unsecured loan.

What can these loans be used for?

Anything you wish!

They may be particularly suitable for purposes such as paying off expensive credit card balances and replacing the debt with lower-cost of borrowing finance.

How do these differ from payday loans?

Payday loans are typically for smaller sums of money lent over very short time periods of, at least theoretically, a few days or perhaps weeks. The sum you have borrowed needs to be repaid in total by a specified date.

If you fail to meet the agreed repayment date, punitive additional charges might be incurred in some circumstances and the accumulating interest costs can be extremely high.

The costs and risks associated with such borrowing have been the subject of recent political debate and legislative discussion. They have become a matter of public concern and recent surveys indicate that the numbers of people considering using payday loans has halved over recent times. Now only six per cent of people polled are saying they would consider using one.

By contrast, guarantor loans are conventional in the way that the sum borrowed is repaid over an agreed period of time by instalments. Of course, as with any form of borrowing, you should be clear that you understand the interest rates offered by different lenders and what that will mean in terms of repayments. You should also be sure that you will be capable of repaying the loan in line with your agreement.

Will I need to be credit scored to get a guarantor loan?

Typically, no, you will not be credit scored.

As your guarantor will be showing that they trust you to the extent that they are willing to share the risk with the lender concerned, you may not need to demonstrate your creditworthiness to the same extent as would be required by other forms of lending or payday loans.

What sort of security will I need to offer to obtain a loan?

None. In a sense, your guarantor is your security.

How much can I borrow?

The maximum amount available through guarantor loans is typically around £10,000

The amount you may be able to borrow in a given situation may vary significantly depending upon the individual lender concerned and their perception of your / your guarantor’s ability to be able to maintain the monthly repayments.

The lender will be operating under strict responsible lending guidelines and will be keen to help you ensure that you are not borrowing more than you can realistically afford to repay.

What interest rates are payable with guarantor loans?

That will vary depending upon the lender concerned and it will, of course, form part of your eventual selection and decision. Typically, these loans work out more cost-effective than payday loans – either over a period of days, weeks or indeed months.

How quickly will I be able to obtain a guarantor loan?

For smaller sums, you may be able to gain access to a decision and the money within a matter of an hour or so.

The case of larger sums, the lenders may require a little more information on aspects of the guarantor’s financial position and that may, therefore, take a little more time.

Even so, the process is normally fast and simple.

What happens if I am unable to meet a repayment?

It is always considered professional and responsible behaviour to notify your lender, in advance, that you have a potential short-term problem. They understand that sometimes these things happen.

In such cases, typically arrangements can be made without a problem though some charges may apply.

If you are consistently unwilling or unable to maintain payments then the lender may need to contact your guarantor.

Are there age limits that apply?

Yes, depending upon the sum you are looking to borrow. They may apply to both the borrower and guarantor.

For example, by law the minimum age for entering into a legal commitment is 18. For larger sums, the guarantor may need to be over 23 and a homeowner.

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The Magnificent Seven Benefits of a Guarantor Loan

Guarantor loans are changing the way that thousands of people borrow money. Instead of a bank, building society or credit union deciding whether you are a suitable risk, a guarantor loan is based on the trust of someone you know.

Instead of a computer making a lending decision, a guarantor loan lets you borrow if you have a friend, colleague or family member who trusts you enough to guarantee that you’ll keep up your repayments.

There are lots of reasons why more and more people are turning to guarantor loans to borrow the cash that they need. Our guide looks at seven of the main benefits of a guarantor loan.7 Benefits Guarantor Loans

1. You’re not credit scored

If you approach a bank or building society for a loan they will almost always use a credit score to determine whether they will agree your borrowing. This involves accessing your credit file – the record of what credit you have and how you manage it.

If you have missed a payment on a loan or a credit card or you have any adverse credit – County Court Judgements, for example – it is unlikely that a traditional lender will agree your loan.

Even if have no adverse credit it can still be hard to get a loan, particularly if you have never had a credit card or loan before.

When you apply for a guarantor loan, you are not credit scored. The lender will not access your credit file, meaning you won’t be declined if you’ve had a credit issue in the past. Instead, you provide a guarantor for your loan. This person trusts you enough that they believe you will keep up your repayments, and they are legally obliged to pay back your loan if you default.

2. A guarantor loan is flexible

The repayment terms for guarantor loans differ from lender to lender. However, with most loans you pay interest on a daily basis and there are no early repayment fees.

This means that if you decide to pay back the loan early, you can reduce the total interest cost. You won’t be penalised for doing this and you’ll only pay back interest to the day that you repaid the loan – not until the scheduled end of the agreement.

3. Your loan is not secured on an asset

A secured loan means that your borrowing is linked to an asset such as your home or your car. If you fail to keep up your repayments the lender can seek to repossess the asset you used to secure the loan.

Guarantor loans are ‘unsecured’ loans. This means that you do not risk losing any of your assets if you have repayment problems.

4. No upfront fees

When you apply for a guarantor loan you won’t pay any upfront fees or charges. And, you can typically agree your loan in principle with no obligation to proceed.

5. You can apply online

Loans with a guarantor are easy and quick to arrange. You can use an online comparison site to find the right loan for you and then most lenders let you apply online.

You and your guarantor can also often digitally sign the agreements (so called ‘e-signatures’) to make the process even easier.

6. You could get your money within an hour

If you need your money quickly then a guarantor loan can be perfect. Smaller loans of up to £500 can often be obtained within 1 hour. If you want a larger sum – typically up to £10,000 – you can normally have your money in your account in 24 hours.

If you don’t have a guarantor lined up then it can delay the process. So, it does help if you have found your guarantor when you make your loan application.

7. You’ll pay a competitive interest rate

If you’re struggling to get a loan through a mainstream lender then you may have considered other alternatives. However, the interest rates on ‘credit repair’ products such as credit cards and loans can be extremely high. Payday loans charge an even higher rate of interest.

As you are providing a guarantor, the interest rate on this type of loan is often extremely competitive when compared to alternative products. And, with no fees and the ability to repay the loan early you can save a considerable sum.

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