Becoming a Guarantor

Who can be a Guarantor?

In order to qualify as a guarantor, you will need to meet the following requirements

Must be 21+ years of age
Homeowners or tenants are accepted
Have a good, clean credit history
Must be in full-time employment and be able to demonstrate the last 3 months' income or self-employed and able to provide the last set of company accounts or VAT return
Must be a UK resident
Have a UK bank account and a valid UK debit card
Not be subject to a current Individual voluntary arrangement (IVA) or bankruptcy order
No benefits allowed

Your relationship with the borrower

So, you agreed to help a friend or family member by agreeing to be their guarantor with Angel Loan

When you agree to be a guarantor with Angel Loans, you’re helping your friend or family member access finance, they may not be able to borrow from a traditional high street lender.

This is because they may have been declined due to their credit score or affordability.

At Angel Loans, we allow the borrower to nominate a guarantor, that’s you to co-sign the loan.

That allows us to consider both your and the borrower’s credit score as well as other affordability factors, like yours and the borrower’s income.

If we are satisfied the loan is affordable and sustainable for you both, we draw up the loan contract with you as the loan guarantor.

Your obligations as a Guarantor

It's important to understand your obligations when you have been nominated as a guarantor for an Angel Loan, it is not simply a character reference.

Before you sign the contract, please ensure you understand the following: -

Is the borrower a responsible person and will they make their loan repayments on time?
Make sure both you and the borrower have read the loan agreement and adequate explanation and fully understand the loan amounts, interest, payment schedule, and terms & conditions.
By agreeing to be a guarantor you’re committing to cover the full loan repayment including interest and capital if the borrower is not able to pay the loan back.
Failure to make a payment as a guarantor could affect your credit score and affect your ability to obtain further credit in the future.

Angel Loans promises to inform the guarantor of any change in circumstances in which they become responsible for paying the loan on the borrower’s behalf.

View our short video guide on your obligations as a guarantor with Angel Loans

Our commitment to you

To ensure all parties are adequately protected and informed at all times, Angel Loans makes the following

Transparency First

We're committed to ensuring that every detail of your loan—be it the amount, interest rates, payment timelines, or the finer points of the terms and conditions—is crystal clear to both the borrower and the guarantor. With us, you're always in the know.

Contract Clarity

To cement our transparency, we'll hand over a comprehensive copy of the loan contract to both the borrower and guarantor. It's our way of making sure you're fully informed and comfortable every step of the way.

Guarantor Guidance

Should there ever be a scenario where the guarantor needs to step in, we'll make sure you're not caught off guard. We'll communicate all the necessary details well in advance, ensuring you're well-prepared for any responsibilities that might arise.

Informed at Every Turn

No surprises here—should the loan account show signs of defaulting, we'll be proactive in informing both the borrower and the guarantor of the necessary steps we need to take. Transparency is key, and we're here to guide you through any complexities.

Empathetic Support

We understand that financial journeys can sometimes take unexpected turns. Should you face any financial hiccups, we're more than just your lender—we're your partner. We promise to listen, understand, and collaboratively find a path that works best for everyone involved. Your peace of mind is our priority.