As a responsible lender we need to ensure that we are lending to applicants that are able to afford their loan. It means a lot to us that someone is prepared to guarantee the loan. This means that we are able to offer some of the most competitive rates available today.
As long as the agreed repayments are made on time there will be nothing for you to do as a guarantor except to sign the documents at the start and speak to us prior to the loan being paid out to confirm your details. If any payments are missed we will ask you to step in and make these payments on behalf of the applicant.
As a responsible lender we need to make sure you are completely happy to guarantee the monthly repayments in the event, for any reason, that the applicant falls into serious arrears or is unable to continue paying (IVA, bankruptcy or death).
A Guarantor can be almost anyone - a friend, colleague or family member (excluding spouse), who may wish to assist, providing they have no shared credit with the applicant. A Guarantor must be a UK homeowner between the ages of 25 and 75, be in full-time employment, earning a minimum nominal gross income of £1,000 per month paid directly into a UK bank account, with an excellent credit history and not be your partner or spouse living with you.
The amount of credit will be paid by cheque sent to you made out to the applicant. This is an additional security precaution and to ensure that you are fully aware that the loan has completed.
The amount of the initial loan is detailed on the indemnity form we ask you to sign. As long as all agreed payments are made on time the balance should reduce and the loan will be fully repaid (and your responsibilities discharged) in the term stated on the Agreement. If the applicant asks us to lend them more money we will only do so if our conditions applicable at the time are met. One of these conditions will be that you give your consent.
Yes, our Guarantor Loans can be settled at anytime during the term of the loan and without any redemption penalties. The Agreement will detail how the early settlement calculation will be made. You should be aware that if the loan is repaid early, the amount repayable may be greater than the amount originally borrowed; particularly if the loan is repaid early in its life.
The interest rate charged is variable which means it can go up or down and therefore increase or decrease the monthly payment due to us. We do our best to avoid changing the interest rate because we know how important it is to know how much each payment will be. If we do decide to change the rates we will give the debtor fourteen (14) calendar days notice in writing of the change. The principal reason we would increase interest rates, although not the only reason, is if there was a significant increase in bank interest rates.
With your consent we will carry out a credit search on you to confirm that you're eligible to stand as the guarantor. You, as the guarantor, will not be linked to the loan on your credit file. The search footprint will remain on your credit file showing that we have conducted a search but that is as far as it goes. The loan will not count as a debt against your name or credit file, nor will it affect your ability to obtain credit in the future unless you fail to comply with your obligations under the guarantee if called upon to do so.
You can change your mind at any time providing the loan hasn't paid out. All we ask is that you inform us in writing should you change your mind. Once the loan has paid out you cannot change your mind and you 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.
Guarantor Loans Direct is a trading name of GBP Loans Limited, which is registered with and regulated by the Information Commissioner's Office under the Data Protection Act - Registration No. Z1621136.
We will always treat your information in a secure and confidential way and it will only be used for the purposes of this loan.
See the Contact Us page of our website for details.
Guarantor Loans Direct is a trading name of GBP Loans Limited, which is one of the most highly respected independently owned financial services organisations in the UK. We are committed to the highest standards of behaviour and practice in the finance industry. But before signing, in particular, you must be happy that:
You understand that if the applicant does not keep up the repayments on your loan you will be asked to pay;
You are able to afford to repay the loan if required to.
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 Guarantee and Indemnity.