Frequently Asked Questions

  1. Home
  2. FAQs
  3. Common Questions
  4. How to get out of being a loan guarantor?
  1. Home
  2. FAQs
  3. Being a Guarantor
  4. How to get out of being a loan guarantor?

How to get out of being a loan guarantor?

Stopping being a guarantor is not easy!

So think carefully before agreeing to be a guarantor in the first place 🤔

Typically, if you want to stop being a guarantor for a loan

  • You’ll have to approach the lender directly
  • Their decision will depend on your personal circumstances
  • Click here for more information on being a loan guarantor

When you might be able to stop being a guarantor


Before the loan has been paid out

If you change your mind about being a guarantor before the monies have been paid out, just contact the lender, and inform them, and typically this will stop the application with:

  • No obligation for the borrower or guarantor to proceed
  • No costs

If the borrower wants to proceed with their application, they will, however, need to find another guarantor.


During the 14-day cooling-off period

There is a 14-day cooling-off period typically from the signing of the loan agreement, or when you receive a copy of the agreement 🧊

(check this with your lender)

During this period the borrower has the option of canceling the agreement and has 30 days to repay the finds in full (including interest and charges).

So, during this period, if you are unsure as to whether you will be able to meet your responsibilities as a guarantor, then approach the borrower and discuss this option.

More information


If the borrower has taken another loan with the same lender without your knowledge or consent 😠

  • You can contact the lender and ask them to consider removing your guarantor’s responsibilities due to a significant change in circumstances.
  • You are likely to be liable to repay the outstanding on the original amount sanctioned.

If you find a suitable replacement guarantor for the loan

If your circumstances change, it could be worth approaching your lender with an application for a release from your obligations if you have found a suitable substitute guarantor for the loan 🙏

  • If the lender is 100% certain that the credentials of the substitute borrower are suitable, they may consider allowing the swap to be made.
  • This decision is solely at the discretion of your individual lender. For example, Amigo Loans will only allow the guarantor to be changed in the period between the loan application being agreed and the money being paid out.

If you get the borrower to repay the loan in full

The main way to remove your responsibilities as a guarantor is for the borrower to repay the loan in full 💸

  • Most lenders allow early repayments in full
  • Without penalty
  • Contact the lender to discuss.

If you repay the loan in full

  • If you repay the debt in full, then you will be released of your guarantor obligations.
  • One option if you have the funds is to do this, and have the borrower repay the debt back to you as a loan.
  • Most lenders allow early repayments in full.

Can I change my guarantor?

At the time of writing, once the loan agreements have been signed, and loan funds paid out, it’s not possible to change your guarantor 👎

  • Genuine Reason – though this is always subject to change, and if there is a genuine reason as to why your guarantor should be changed (such as a change in their circumstances), you should contact your lender straight away to discuss your options.
  • Cooling-off period – note the 14-day cooling-off period, so if you really do need to change your guarantor, it’s theoretically possible to cancel your agreement in this period, pay back the loan, then take out a new loan with your replacement guarantor. However, you could be liable for loan fees, depending on the specific lender’s terms.

What happens if my guarantor dies?

In the sad event of your guarantor dying, you should contact your lender to discuss the situation 📞

  • The lender will probably have a claim over their estate or property in order to recover any debts due
  • Though your guarantor should only liable for your loan debts if you stop paying.

Need more help?

This article did not constitute advice.

Should you require any further help contact

Find out what you could borrow and the costs