UK Guarantor Loans

We're going to tell you all about Guarantor Loans in the UK. Guarantor loans mean that literally anyone in the UK can borrow up to £3000 without putting any of their possesions at risk, meaning guarantor loans are unsecured. What makes them different is your loan is backed by a guarantor, while they are credit checked and must be a UK homeowner you can be a non homeowner tenant and will not suffer no credit check.

No Credit Check

Because of the way the guarantor loan works you will never be credit checked. That's right NO CREDIT CHECK! This is a very rare loan product in this day and age when the banks are cutting right back on lending and there are very few lenders who will lend to people with bad credit. The reason there is no credit check for the borrower is simple. A guarantor loan is effectively secured against the guarantor meaning if the loan repayments are not kept up then the guarantor has to make the payments. If they fail to make the repayments then their home may be at risk.

Guarantor Definition

By definition a guarantor is a person who becomes responsible for an outcome. In the case of a guarantor loan the guarantor is responsible for the loan. The borrower is simply the person who takes out the loan and makes repayments, the guarantor pays the loan back if the borrower fails to do so.

Being a Guarantor

Being a guarantor is a noble thing and you are really helping someone get a loan when otherwise they probably can't. The benefits are all about helping your friend or family member, but the role you play is full of risk. Initially you are credit checked, and you have to prove you are a homeowner. The reason for the homeownership is simply, as the guarantor your home is the final security for the loan. If you have to make the repayments and you don't your house will likely have a charging order placed against it, and if that doesn't resolve matters a forced sale or even losing the house itself. So be careful and make sure the borrow is trustworthy and able to meet the repayments regardless of how bad their credit maybe.

Guarantor Loans for the Unemployed and people on benefits

Because guarantor loans require no credit checks they are perfect for people on benefits and the unemployed so if you are unemployed then there are options for you if you need a loan. Loanfinder is always going to be an option if you cannot find a guarantor but still need an unsecured loan and have no credit history so need a loan with no credit checks.