You’re in the right spot for a Guarantor Loan!
Securing a guarantor can be simpler than you might expect. In fact, At Angel Loans, we make guarantor loans possible and we’ve already assisted many applicants like yourself successfully find someone to act as their guarantor.
What is a Guarantor?
Let’s start by clarifying what a guarantor actually does.
A guarantor is someone who trusts you enough to support your loan. They agree to cover any missed payments if you’re unable to make them.
Why Do I Need a Guarantor?
Guarantors provide additional security to lenders, ensuring loan repayments will be made, even if the borrower falls behind.
Can I Get a Loan Without a Guarantor?
Some loans don’t require a guarantor, but guarantor loans often offer better rates for those with lower credit scores.
Who Can Be a Guarantor?
A guarantor can be almost anyone, from friends and family to colleagues. However, it’s essential that your guarantor knows you well and is someone you both trust and rely on.
They must meet the following criteria:
Be between 21-75 years old
Reside in the UK
Have a good credit history
Home owner or tenant
Earn at least £1800 per month
Be able to afford repayments if you can’t
Though homeownership isn’t required, it may increase the chances of approval. We recommend asking a homeowner first.
Frequently Asked Questions About Guarantors and Guarantor Loans
Does my guarantor need to be employed?
No, employment isn’t required. However, they need a stable income source to cover payments, which can include pensions.
Can my guarantor be retired?
Yes, as long as they have a reliable income, like a pension, and can afford the payments.
Can a family member or partner be my guarantor?
Yes, family members are eligible. However, partners are not as you share finances we can’t be sure the loan won’t cause financial strain.
Can I live with my guarantor?
Yes, you can live at the same address. The same rules apply as with shared finances, ensuring affordability and avoiding financial stress.
What if my guarantor doesn’t speak English?
Your guarantor must be able to communicate in English to fully understand the loan agreement and responsibilities.
Can I use a guarantor from outside the UK?
We can only accept guarantors who reside in the UK (England, Scotland, Wales, or Northern Ireland).
What Will You Ask My Guarantor?
Once you’ve submitted your application, your guarantor will need to provide some basic information (such as name, address, and date of birth) and electronically sign the agreement. You’ll receive an instant decision once they’ve completed their part.
How to Ask Someone to Be Your Guarantor
Start by explaining why you need the loan and why you’re asking them to help. Be honest about your financial situation and emphasise that this is a well-thought-out decision. Highlight that having a guarantor could help improve your credit score as long as you maintain payments on time.
For example, you could say:
"Mum, Dad, Friend… I’m looking to buy a new car but need a guarantor for my loan. Angel loans can lend me the money, but I need someone who trusts me to make the payments. Could you be my guarantor?"
Let them know the benefits of this arrangement, such as improving your credit score, and assure them that you can comfortably afford the repayments.
Does My Guarantor Need to Complete a Budget Plan?
Yes, before the loan can be paid out, we’ll ask your guarantor to complete a budget plan to ensure they can comfortably cover the repayments if needed.
Why Is the Guarantor Contacted Directly?
We contact your guarantor directly to ensure they fully understand their responsibilities. This helps prevent any issues down the road by confirming they can afford the payments.
Will You Send Paperwork to the Guarantor?
Yes, we’ll send a confirmation letter once the loan is paid out and monthly statements to keep your guarantor informed about your repayments. If the loan falls behind, they will also receive notices to ensure they are aware of the situation.
Why Was My Guarantor Declined?
If your guarantor is declined, there’s no need to worry. You just need to find another person who meets the criteria. The most common reason for decline is an insufficient credit score or changes in their financial situation.
Can Someone Be a Guarantor for More Than One Person?
A guarantor can only back one loan at a time to ensure they won’t be responsible for multiple loan payments.
Can a Guarantor Get a Loan Themselves?
A guarantor can apply for other loans, but they need to consider their ability to repay your loan if you don’t.
What If My Guarantor Doesn’t Have Internet Access?
If your guarantor doesn’t have internet, we’ll send a paper form for them to fill out and return by post. However, using someone with internet access will speed up the process.
Can I Change My Guarantor?
Yes, you can change your guarantor before the loan is paid out. If you’ve already received the loan, you’ll need to repay it in full before applying with a new guarantor.
What Happens If My Guarantor Can’t Pay?
If your guarantor is unable to make payments, we’ll work with both of you to find a solution. We aim to avoid legal action but may take steps such as a CCJ (County Court Judgment) if necessary.
What Is the Guarantor’s Responsibility?
A guarantor agrees to cover the loan payments if you’re unable to. We prefer to work with the borrower directly before involving the guarantor, but they may need to step in to prevent further issues.
Will This Loan Be Secured Against My Guarantor’s Home?
No, the loan won’t be secured against your guarantor’s home. However, legal action could be taken if the account falls significantly behind.
Why Does My Guarantor Need a Debit Card?
We use your guarantor’s debit card for identity verification and to collect payments if you fall behind on your loan.
Got more questions? Feel free to reach out, and we’ll help you get the answers you need. Call the Angel Loans sale steam on 0333 577 2000.
If you would like to see our legal contractual documents, these are available at www.angelloans.co.uk
Representative APR (Variable) Example:
If you borrow £1,000.00 over 18 months at a flat rate of 49.8% per annum [fixed], and with a representative 63.0% APR, you will make a total repayment of £1,439.27. The total charge for credit is £439.27.
