If you’re looking for a guarantor loan and your chosen guarantor isn’t a homeowner then you’ll need to apply with a lender who accepts tenants as guarantors. This isn’t a problem, simply view our tenant guarantor lenders and click through to their website to apply for your loan direct.
Recent personal loans Q&A
Are there any specific requirements in order to get guarantor loans for tenants?
Tenant guarantor loans
Guarantor loans are a kind of unsecured loan that allows a person to borrow a significant amount of money with the help of a guarantor, who will co-sign the agreement and agree to repay the loan in case the borrower can’t keep up with the payments. These types of loans are becoming increasingly popular for people who:
• Have bad credit history or a poor credit score
• Have moved address very frequently or are not on the voters roll.
• Don’t have previous loans or credit history
• Are in arrears with their mortgage payments or have CCJs
• Have defaulted in previous loans, accounts or credit cards
Guarantor loans for tenants work the same way as if you were a homeowner. There are no specific requirements if you are a tenant. However, there are some criteria the borrower needs to meet in order to apply for this kind of loans.
How to get a guarantor loan?
Guarantor loans have a high acceptance rate
In order to be able to get a guarantor loan, you and your guarantor need to fit the lender’s affordability criteria. Most lenders require that your guarantor owns their own home, however there are a couple of lenders who accept tenants and non homeowner guarantors. So the first step will be to talk to the lender and ask what the requirements are for this kind of loan. Requirements may vary from lender to lender, so it is a good idea to do some research first. Most of the common requirements will be:
• Be at least 18 years of age and a UK resident
• Have a UK bank account
• Must not be bankrupt.
• Provide proof of identity and proof of income
• Guarantor must have a good credit history and prove that can afford the payment of the loan in case the borrower defaults
Reasons to choose a guarantor loan
If your options are very limited due to your circumstances, then the guarantor loan could be one of your best prospects. Some of the advantages include:
• Being able to borrow up to £10,000 and flexibility to pay the loan within five years
• It does not matter if you have a bad credit history or not history at all
• Your guarantor can be a homeowner or a tenant, a close relative, a colleague or a friend.
• The loan is considered to be significantly cheaper than choosing payday or fast repayment loans, and with fixed repayments, you will be able to start clearing poor credit histories, or improving your credit rating.