Can I change my mind about being a guarantor?
You do have a right to cancel 👍
- Right to cancel
The Financial Conduct Authority which regulates loans and credit agreements in the UK provides consumers with the right to cancel a distance contract within 14 calendar days.
In other words, if the loan is cancelled within 14 days of signing the loan agreement, then the loan agreement can be terminated and your liability as a loan backer ends.
If you or your borrower are looking to do this, please check your lender’s specific procedures regarding cancelling the agreement and seek advice from moneyadviceservice.org.uk.
Please note that you may be liable for interest and fees for the time you, or the borrower, did hold the funds.
- Contact the lender
If this 14-day window has been missed, at the time of writing none of our lenders will allow a guarantor to be removed from a loan agreement once it has been signed, so the only option would be to terminate the loan agreement by fully re-paying the loan.
It is always worth approaching your lender directly to ask them for any options that may exist, as lenders do sometimes change their terms and conditions.