It is often the case that a person cannot get a loan because of their credit history. Guarantor Loans are special loans offered in these circumstances, provided that someone who has an excellent credit history offers to pay the loan if the debtor fails to make repayments i.e. defaults on the loan. This person is referred to as the Guarantor.
An option that can help ease the mind of the prospective Guarantor is to ask the debtor to sign an indemnity. This is a contract that states the debtor will pay back the Guarantor, should the Guarantor be forced to pay back the loan for the debtor. Guarantor Loans are therefore a flexible option for most people.
As a responsible lender we need to ensure that we are lending to customers that are able to afford their loan. It means a lot to us that someone is prepared to guarantee your loan. This means that we are able to offer you some of the most competitive rates you can get today. As long as you keep up your agreed repayments there will be nothing for your guarantor to do except to sign the documents at the start and speak to us prior to the loan being paid out to confirm their details.
Anyone aged 21 or above is eligible to apply for one of our guarantor loans, provided they can supply an appropriate guarantor. Computerised or automated credit scores of the applicant are not taken into account, but as a responsible lender, we will endeavour to make sure that the guarantor loan is affordable to the applicant.
A Guarantor can be almost anyone - a friend, colleague or family member (excluding spouse), who may wish to assist, providing you have no shared credit with them. Your Guarantor must be a UK homeowner between the ages of 25 and 75, be in full-time employment with an excellent credit history and not be your partner or spouse living with you.
Your Credit Agreement describes the terms upon which we are prepared to make a loan to you. In particular it describes the amount of each element of your loan, the costs charged by us, the monthly payments, the period of the loan and the Annual Percentage Rate (APR).
Please check carefully that these details are what you have agreed with us.
The cheque will be made out to you but will be posted to your guarantor. This is as an additional security precaution and to ensure that your guarantor is fully aware that your loan has completed.
Payments start one month after your loan completes. The due date will be the same date each month as the day your loan completes until the end of the loan unless you repay it earlier. This means if your loan completes on the 15th June your first payment will be due on the 15th of each month thereafter.
Your Guarantor can change their mind at any time providing the loan hasn't been paid out. All we ask is that they inform us in writing should they change their mind. Once the loan has been paid out, your guarantor cannot change their mind and will be responsible for the repayments on the loan (in the event of default by the debtor) and any other charges until the loan has been paid off.
You can withdraw from an agreement within 14 days following conclusion of the agreement or (if later) once you have received a copy of the executed agreement. You must repay the credit and must also pay interest for each day the credit was drawn down. Please contact us on 0808 132 0150 or write to the address shown at the beginning of the Agreement.
You have up to 3 years to pay off your loan, depending on the option you have chosen.
It is important that all payments are made on time as agreed to ensure that additional fees are not added to your account. If you experience problems or anticipate problems making payments you should contact us immediately and we will do our best to help you. If you do miss any payments we will contact your Guarantor as it will be their responsibility to make the payment. The additional administration costs incurred by us will be added to your account. They are explained in full in your loan documents. If you continue to miss payments and we are unable to resolve the situation satisfactorily as a last resort we will instruct our solicitors to commence proceedings against you and your guarantor. Any costs charged to us by our solicitors will also be charged to you.
Any legal purpose including consolidating existing debts.
We will email your PIN number to the email address you provided. Follow the simple guidelines on the HELP screen, where you can select your loan option and then download your personalised Consumer Credit Agreement (CCA). You can then decide whether to proceed before filling out any more forms.
If you wish to change your personal details, just fill out another Fast Track Form with your corrections and we will issue another PIN.
If you simply wish to select a different loan option, you can re-use your existing PIN, which remains valid for 7 days.
No. We do not accept any joint applications currently.
You will need a copy of your valid UK passport or UK birth certificate or UK driving licence, two original consecutive monthly bank statements dated in the last 90 days and covering at least 60 days, showing your main income and outgoings and copies of your payslips for the last 3 months. You will also need EITHER a copy of your most recent P60 or a current reference from your employer in order to verify your Application Form.
We cannot take responsibility for any original documentation that goes missing in the post. All original documentation will be returned to both you and your guarantor even if your application is unsuccessful.
We will not contact your employer directly without your consent. If you cannot provide copies of recent payslips, we may ask your permission to obtain a brief reference from your employer to confirm your position, length of service and monthly salary. As a responsible lender and to protect our customers, we have an obligation to ensure that the loan will be affordable. This check also protects you from identity theft, which is an increasing threat within the UK.
Date of birth (you must be 21 or over), residential addresses for the last 3 years, employment details and some financial details.
At the present time there is no insurance available on any loan products we offer.
See the Contact Us page of our website for details.
Completion is often delayed due to incomplete documentation (fields being left blank) or unclear or illegible identification. Please make sure your ID's clearly show your name and address and that all your addresses match. You must provide the contact numbers (at least one landline and one mobile number) that we require in order to contact you and your guarantor.
If you are unsure about anything contained in these FAQ's or in your loan documents we strongly recommend that you consider taking independent legal advice before you sign the Credit Agreement.