Best Interest (APR%) Rates on UK Guarantor Loans
Browse the best guarantor loans available to UK applicants below, including all the big brand names and some lesser known providers that might get you a better deal.
|Brand Name||Website||Min Loan||Max Loan||REP APR %||Duration||Guarantor Requirements||Guarantor Age||Same day?||Accepts bad credit?|
|Guarantor My Loan||click here||£1,000||£10,000||29.0%||1 - 5 years||Homeowner||No||No|
|UK Credit||click here||£1,000||£10,000||39.9%||1 - 5 years||Homeowner||21 - 70||No||No|
|TFS Loans||click here||£1,000||£15,000||39.9%||1 - 5 years||Homeowner||18 - 78||No||No|
|Suco||click here||£1,000||£15,000||39.9%||4 - 5 years||Homeowner||18 - 78||No||No|
|Trust Two||click here||£500||£10,000||43.8%||1 - 5 years||Homeowner / Tenant||25 - 74||No||No|
|Buddy Loans||click here||£1,000||£7,500||49.9%||1 - 5 years||Homeowner / Tenant||18+||No||Yes|
|MASA||click here||£1,000||£7,500||49.9%||1 - 5 years||Homeowner / Tenant||25+||No||No|
|Juo Loans||click here||£1,000||£3,000||49.9%||1 - 3 years||Homeowner / Tenant||25+||No||Yes|
|1Plus1||click here||£500||£5,000||47.8%||1 - 5 years||Homeowner / Tenant||18 - 75||Yes||Yes|
|Bamboo||click here||£1,000||£8,000||49.7%||1 - 5 years||Homeowner / Tenant||21 - 72||Yes||No|
|Amigo||click here||£500||£10,000||49.9%||1 - 5 years||Homeowner / Tenant||18 - 75||Yes||Yes|
|Brand Name||Website||Accepts bad credit?||Min Loan||Max Loan||REP APR %||Example Loan Amount||Example Duration||Example Monthly Repayments||Example Total Amount Paid||Shortest Length||Longest Length||Accepts Homeowner Guarantor?||Accepts Tenant Guarantor?||Applicant Must Be Homeowner?||Min G Age||Max G Age||Same day?|
|Buddy Loans||https://www.buddyloans.com/||Yes||£1,000.00||£7,500.00||49.9%||£3,250.00||3 years||£158.57||£5,714.67||1 year||5 years||Yes||Yes||No||18||No|
|Amigo||https://www.amigoloans.co.uk/loans/borrower/apply||Yes||£500.00||£10,000.00||49.9%||£4,000.00||3 years||£195.16||£7,025.76||1 year||5 years||Yes||Yes||No||18||75||Yes|
|1Plus1||https://www.1plus1loans.co.uk/apply/||Yes||£500.00||£5,000.00||47.8%||£3,000.00||3 years||£143.84||£5,178.24||1 year||5 years||Yes||Yes||No||18||75||Yes|
|Juo Loans||https://www.juoloans.co.uk/||Yes||£1,000.00||£3,000.00||49.9%||£1,500.00||2 years||£92.81||£2,227.52||1 year||3 years||Yes||Yes||No||25|
|UK Credit||https://apply.ukcredit.co.uk/||No||£1,000.00||£10,000.00||39.9%||£4,500.00||3 years||£201.15||£7,241.40||1 year||5 years||Yes||No||No||21||70||No|
|Guarantor My Loan||https://www.guarantormyloan.co.uk/gl/index.php||No||£1,000.00||£10,000.00||29.0%||£3,000.00||3 years||£120.46||£4,366.44||1 year||5 years||Yes||No||Yes|
|TFS Loans||https://www.tfsloans.co.uk/application/1||No||£1,000.00||£15,000.00||39.9%||£8,000.00||5 years||£279.20||£16,752.00||1 year||5 years||Yes||No||No||18||78|
|Trust Two||https://www.trusttwo.co.uk/apply/||No||£500.00||£10,000.00||43.8%||£4,000.00||3 years||£185.27||£6,669.72||1 year||5 years||Yes||Yes||No||25||74|
|Suco||https://www.suco.co.uk/guarantor-loan-quote||No||£1,000.00||£15,000.00||39.9%||£8,000.00||5 years||£279.20||£16,752.00||4 years||5 years||Yes||No||No||18||78|
|MASA||https://www.masaloans.com/livecheck||No||£1,000.00||£7,500.00||49.9%||£7,500.00||5 years||£296.44||£17,770.52||1 year||5 years||Yes||Yes||No||25|
|Bamboo||https://www.bambooloans.com/welcome||No||£1,000.00||£8,000.00||49.7%||£2,600.00||3 years||£126.61||£4,557.89||1 year||5 years||Yes||Yes||No||21||72||Yes|
What are guarantor loans?
A guarantor loan is a loan where you have someone else join into the contract who is willing to take on the monthly repayments if you cannot pay them.
This allows you to get a much better interest rate then you would normally, which is ideal for those with a poor credit history or limited monthly income.
They can take the form of secured or unsecured loans.
How does a guarantor loan work?
Guarantor loans work in much the same way as traditional loans, during the application process you simply provide some extra information for your guarantor.
This allows the lender to be at less risk lending to you, because often a guarantor is required to have a better credit rating than you.
Your guarantor is only contacted as a last resort if you cannot afford to repay the loan.
I need a guarantor for my loan, who can I use?
You can choose any close friend or family member to be the guarantor for your loan. It is recommended that they have a good credit history, and they have to be a homeowner or a tenant.
It is advised that you don’t use your wife or husband to be your guarantor, as their financial situation is usually linked to yours, which means if you’re in a bad position they often won’t be able to pay either.
For loans of larger amounts, the guarantor will often have to have enough equity in a mortgage or other forms of collateral to match the value of the loan.
Are guarantor loans a good idea?
Yes guarantor loans are a good idea in the right circumstances, they can be fantastic is you have a bad credit rating, or if your income doesn’t allow you to make repayments at a higher interest rate (as guarantor loans often come with lower interest rates than other personal loans).
Are guarantor loans guaranteed?
No loan is guaranteed, and that’s why the application processes are so long, because lots of checks are run to make sure a loan if affordable to you.
However as far as loans go, using a guarantor is one of the best ways to guarantee you credit, because you’re using someone with a better credit rating to increase your odds of being less risky.
Which banks do guarantor loans?
Unfortunately you won’t find any high street banks providing guarantor loans, simply because they can get messy if someone cannot pay, and they prefer to stay out of problems such as those.
The most well known brand that do guarantor loans are called “Amigo Loans”, however no company is 100% perfect.
What are the guarantor loan debt implications?
The implications of a guarantor loan debt are on both you and the guarantor. You must make your repayments every month, and if you cannot then your guarantor must pay them.
If you both cannot pay the debt then the lender can legally take you to court in order to repay. This may harm both of your credit ratings.
What are your rights with a guarantor loan?
The Credit Contracts Consumer Finance Act (CCCFA) provides you with rights as a guarantor. Lenders must check that a guarantor wouldn’t sustain serious hardship by making repayments on behalf of the loan applicant, they must help the guarantor make an informed decision, and make them aware of all the implications.
The lender also has to be reasonable and ethical when dealing with the guarantor, avoid making the guarantee oppressive, comply with the Fair Trading Act (no misleading or deceit), and must comply with the Consumer Guarantees Act.
The lender must also provide two bits of key information when signing up, which are a the guarantee’s terms, and the key information that the loan applicant was provided with.
You can find out more about this on the Citizens Advice website.
The loan guarantor has the responsibility to repay the loan if the loan applicant fails to make payments. This can be 1 month of repayments, or all months of repayments, depending on the applicants circumstances.
This is why you must do all the checks you can and ensure the applicant can pay before you agree to be their guarantor, as this sort of problem can break up long term friendships and relationships very easily, as financial problems are one of the most stressful on anyone. They can effect your ability to work and relax, keeping you from sleeping and from having meaningful relationships.
You can find out more ways of coping with money problems on the NHS website: https://www.nhs.uk/conditions/stress-anxiety-depression/coping-with-financial-worries/
Can you get a guarantor loan while living with parents?
Yes you can get a guarantor loan if you live with your parents, the living status for a guarantor loan is linked with the guarantor, not with the applicant.
If you’re using your parents as a guarantor, they must be homeowners or at least tenants. This can often be a good way to get a new car, or pay for a big holiday while you are still young.
Alternatives to Guarantor Loans
If your poor credit rating doesn’t allow you to get a guarantor loan, or you simply don’t have anyone that trusts you enough to become your guarantor, then there are other lending options available for you.
Bank Lending / Collectives or Building Societies
If you speak to your main bank or credit provider, you may be surprised by the offers they can give you. They have a detailed understanding of your financial situation because they already offer you financial products, and if you can give proof of income they can probably give you comparable interest rates to a guarantor loan.
Local or National Credit Unions
These can be a much more personal and understanding financial lender, providing you with a supportive loan that’s not designed to extract profit from you, but simply to help you through tough times.
Peer-to-peer loans and lending schemes
If you haven’t heard of peer-to-peer loans then don’t worry as they’re fairly new, but they can offer quite attractive interest rates. They work through micro-payments, where many different people will band together to provide you with a loan (in the hope that they will make some money from it that’s better than a savings accounts).
Credit Cards and Over Drafts
These are more traditional forms of debt, and you will most likely have tried these already if you’re looking for a guarantor loan. However if you haven’t already exhausted your line of credit in these areas, then they can offer a useful way to sort your short term finances out.
Credit cards for example can give you 30 days, 90 days, or even 180 days of free credit, which is considerably better than the deals you will receive with a loan.
Whilst these loans have a terrible reputation, and offer the worst interest rates on the market, they can still be a smart option if you have nowhere else to turn. Just remember that you will have to pay the majority of the loan off at the end of the term, so put some money aside each month in a pot to make sure you can, as the late repayments can escalate quickly.
Instalment Loans – Alternative to Payday
These loans are exactly what you might think, paying off your loan over equal instalments over the full period of the loan. This avoids the bulk payment at the end of the term that you get with payday loans, which can often catch people out who haven’t paid.
How useful was this post?
Click on a star to rate it!
Average rating / 5. Vote count:
We are sorry that this post was not useful for you!
Let us improve this post!
Thanks for your feedback!