David Allan

Expertly compared by David Allan

Products Updated May 9, 2018

Guarantor Van Loans

If you have found it difficult to find finance to buy your new van or if you have a history of bad credit then you can increase your chances of success by having a guarantor. Our loan experts have access to all the major lenders who provide loans for vans with a guarantor.

3 providers expertly compared:

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All credit types
Rated 5.0/ 5

CarFinance247 Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £250,000

Representative APR
6.9%

Loan Term
1 - 7 years

Loan Type
Vehicle Finance Broker

Status
Homeowners & Tenants

Finance for cars, motorbikes, vans and motorhomes. We make the process hassle-free & provide the customers with a helping hand throughout. Our aim is to get the best possible finance deal, whilst providing an efficient service of the highest quality.

Representative Example

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Poor Credit
Rated 5/ 5

Uk Credit Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£1,000 - £10,000

Representative APR
39.9%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

Trusted, simple guarantor loans from £1,000 to £10,000. With the help of a friend or relative to guarantee your loan UK Credit could get you the cash you need.

Representative Example

3 providers expertly compared:

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All credit types
Rated 5/ 5

Trust Two Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

Loan Amount
£500 - £10,000

Representative APR
43.8%%

Loan Term
1 - 5 years

Loan Type
Guarantor Loan

Status
Homeowners & Tenants

With Trust Two you could borrow up to £10,000, in your own name, by asking a relative or friend to guarantee that you'll repay it. Apply online and, once you and your Guarantor are approved, on average you'll have the money within 3 days.

Representative Example

Using a guarantor to get a van loan

Get the loan you need with help from a guarantor

Get the loan you need with help from a guarantor

Getting a loan can be difficult, particularly if you have a bad credit score, or if you don’t have any credit record at all. If you find yourself in this situation you are likely to find that you will not be able to get a mainstream loan and you might feel that you have few options left available to you. You are probably aware of the direct lender loans that are available, but you are also probably aware of the very high interest rates that they carry with them and also the cap of £10,000 on your borrowing. Although these loans can be relatively easy to get, in comparison to mainstream loans, they are not necessarily your only option.

What is a guarantor loan?

In simple terms a guarantor loan is one where you find someone to provide a guarantee that the loan repayments will be made if you are, for some reason unable to repay them. You guarantor is effectively backing you up and is providing reassurance to the lender that they are not taking an unnecessary risk in providing you with a loan. Your guarantor does need to understand that in the event that you default on a payment they will have to make the payments for you and will be responsible for the rest of the loan to be paid off.

What are the advantages?

What are the advantages?

What are the advantages?

The main advantages of a guarantor loan to buy a van are that you will be able to borrow more than if you take out a direct lender loan. With a guarantor loan you can take out up to £7500 because of the lower risk that lenders perceive you to be. You will also benefit from lower interest rates that if you took out a direct lender loan. With a guarantor loan you can expect to pay interest of between 40% and 50%, however most loans are nearer the higher of those two figures. If you are able to make all of your payments on time and complete the repayment of the entire loan you will actually start to rebuild your credit score, so you can get some positive effects out of taking out this type of loan, which will then potentially make it easier for you to get better loans in the future with lower interest rates.

What are the disadvantages?

The main disadvantage is that you need to find someone who is willing and able to act as a guarantor for you. If you are able to make your repayments on time every week, then your guarantor will not see anything of your loan. However, if you are unable to make your repayments it then falls to your guarantor, and so they have to be in a position to be able to afford the repayments instead of you. You should also bear in mind that should this happen you may affect the relationship you have with your guarantor.

 

FAQ's

What is a guarantor loan?

A Guarantor loan can help you gain access to the money you need even if you can't obtain credit in your name alone. Typically a relative or good friend will agree to be your Guarantor. They promise, should you ever fall behind with loan repayments, to personally cover them for you. Because your Guarantor knows and trusts you - and has also agreed to cover any repayment shortfall this makes it easier for a lender to lend.

Who can act as a guarantor?

Most people can act as a guarantor, such as a friend, family member or a work colleague. However, they must not be your wife or husband. They must have a good credit rating and can be either a homeowner or tenant.

How do I know a guarantor is right for me?

If you are having problems getting a loan because of bad credit or you have a low credit score then a guarantor loan may be a good solution. You must be able to afford the repayments, therefore you must consider your financial budget and living expenses.

How much can I borrow?

Generally lenders will grant loans from £500 - £10,000 over 1 - 5 years. You will also have the flexibility to pay of your loan early or make additonal overpayments.

Can I get a no credit check guarantor loan?

No. You will need to undergo a credit check and so will your chosen guarantor. However, guarantor loans are designed with the poor credit applicant in mind. If you do have some adverse credit or have struggled to get finance before, then a guarantor loan may prove to be a good solution.

Will a guarantor loan enable me to build my credit rating?

Yes. By successfully managing your loan payments and making payments on time you will help to build a positive credit rating and credit score.

Is there a large choice of guarantor lenders on the market?

The guarantor loans market has lots of choice with many lenders providing a similar service and offer similar loans and interest rates.

Some of the lenders on the market include: TrustTwo, Amigo Loans, Lendfair, Talk Loans Georgebanco, MasaLoans, Juoloans, Buddy Loans, UK Credit, Tfsloans , Likelyloans, Bamboo Loans, 1plus1 Loans, Solution Loans

Are guarantor loans suitable for pensioners?

Yes. If you are retired or at pensioner age then you are still able to get a guarantor loan. The lender will take into consideration your age which calculating the loan term depending on how old you are.

Can I get a loan as a discharged bankrupt?

Yes. With the help of a suitable guarantor with a clean credit record you can still apply for a guarantor loan.

I have previous missed loan repayments and defaults can you help?

Yes. With the help of a suitable guarantor who is a homeowner and who has a clean credit record you can still apply for a guarantor loan.

We are independently reviewed by our verified customers and web users:
Rating: 4.6 / 5 with 27 votes

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