Guarantor loans are not comparable to your typical secured loan. There are obviously lots of non guarantor loans for those people who have no guarantor but for those people that do, guarantor loans are a godsend. Something that is not always clear and is asked over and over again is...
What are the guarantor requirements?
There are only a few guarantor loans lenders in the UK so it's easier to generalise about their requirements and guarantor criteria. The following list is typically what lenders like FLM Loans require your guarantor to meet.
The guarantor requirements and criteria
Guarantor must be a UK homeowner
A guarantor must be a UK homeowner is one of the most important requirements. Your guarantor is effectively the guarantor lenders security for your loan and their home is the lenders security against the guarantor.
Guarantor must be between 23 and 70 years old
The sad reality is old people die, and if you were lending money to someone would you be upset if they died while still owing you money? As harsh as it sounds this is a common sense rule, and it's always upsetting to think about a loved one of someone you know dying so probably best you just stick to the rules.
Your guarantor must have a good credit history
Because your guarantor is effectively the security for the loan your guarantor must have a good credit history. If their credit score reports minor blemishes this might be ok but any record of frequent missed repayments and suchlike and they are unlikely to qualify to be your guarantor.
Your guarantor must Earn at least £800 per month from a job, pension or benefits
Guarantor loans lenders don't care where your guarantor gets their money from, they can be on benefits, earning money from a job or a pension, it doesn't matter. If they earn £800 per month then they will meet the guarantor requirements.
What to do if your Guarantor does not meet the Requirements?
Quite simply, you look at the other options. You are not going to achieve anything by calling up the guarantor loans company and asking them to change their rules so your guarantor can qualify. Their hands are usually tied by the banks that lend them the money to lend to you so what you need to do is find an option. A good start point is to find a loan company who will do all the legwork for you but who will charge you no upfront fee.
Who will find me a loan and charge me no upfront fee?
You can try the best no loan no fee bad credit no upfront fee charging loanfinder in the UK. It's no trouble to try them as they are 100% free to see. Find out what loans they recommend to you right now for free: FIND ME A LOAN!
