Loans with Guarantors
The growing trend has been for the banks to slow down on their lending and this has left many people with only one real option to find loans with guarantor. It's a sad fact that for many people loans with guarantors are the only way they can get an unsecured personal loan. Obviously this is for a very good reason, they have bad credit or poor credit and of course the banks of today simply cannot lend to those people direct. The real option for non homeowners in the UK is to either find some thing they own to sell, or something they can secure a loan against like a car (logbook loans) or talk their situation over with someone they trust and someone who trusts them enough to be their guarantor for a loan.
Guarantor Loans UK Lenders
There are a few options in the UK guarantor loan market. you can try and go to Flmloans.co.uk who will charge you around 42% APR or you can go to BlackHeath who will charge you more for the right to get a guarantor loan. The thing not to do is go to brokers without first arming yourself with some serious tools.
How to use brokers
If you cannot find any direct lenders to help you and you have tried guarantor loans then you are more than likely not going to be able to get a loan with anyone. Brokers have a reputation for telling you want you want to hear and promising loans with incorrect details and requirements, I should mention many brokers are nothing like this but when you want to get an unsecured guarantor loan in the UK and you have a bad or poor credit history there are people out there who are going to try and take you for a ride. So, first things first, if the broker wants you to pay them an up front fee put the phone down. If they have found you a loan, ask what type it is and if it is one of those loans with guarantor involvement. If they will tell you who the loan is with there is no harm contacting the loan company direct you may well get the loan for less anyway and at least you will know the loan company is real and the broker is not kidding you. The other important thing to ask is the requirements, if the loan requires a guarantor you need to know about it advance, it may be a total waste of time if you know you can't find a guarantor or maybe you can do some research on how to find a guarantor.
Do banks have loans with guarantors in the UK?
Some banks do do secured loans that need a guarantor indeed some bank accounts require parents to guarantor them but as a rule they do not do unsecured personal guarantor loans for people with bad credit. They just don't want to be seen operating in the sub prime market right now.
