How to find a guarantor for a loan?

Stick man holding a magnifying glass

Persuading someone to be your guarantor is more than just asking.

We look at the steps that you need to take to successfully find yourself a suitable guarantor

1. Make a list of people

The first step to finding a guarantor is to make a list of people.

  1. a. Family members

    We have found that the most common guarantors are family members such as grandparents, parents, aunts and uncles, brothers and sisters, cousins etc. They are usually someone who has known the borrower well for many years and trusts them.
    Just because these are the 'usual' people to act as guarantors you should not limit your list only to family members.

  2. b. Friends and work colleagues

    Other possible guarantors include friends and work colleagues. Though again we would suggest thinking of people who know you well and trust you.

    Also think of anyone else who may fall outside of these categories who may also be suitable. Now you have your list, you now need to whittle it down to those who may qualify.

2. Qualify your list

It is possible that not everyone on your list will qualify to be a guarantor as our lenders do have specific requirements. So before you contact people you need to be aware of the guarantor criteria, and take those off the list who you think may not qualify.

Typical Guarantor Criteria

  • Regular form of income - this can include a pension
  • Can afford the loan repayments (if they had to make them instead of you)
  • Has a UK bank account with a debit card
  • Clean credit history (or marginally imperfect)
  • Your husband or wife (only one of our lenders will accept this so you are greatly reducing your choice of loans)
  • 18 – 75 years old
  • A UK resident

We appreciate that although you may not know the details of your family and friend’s finances and if they could actually afford to make your loan repayments, it is worth spending a little time thinking about the people on your list and this criteria.

3. What you are going to ask and how?

Now you have your refined list of people, it is worth spending a bit of time thinking about your approach so to maximise your chances of them saying yes.

Below are the items we suggest you think about beforehand:

  1. Why you need the money - have a good answer to their questions about why you would need the loan
  2. The affordability - anything you can show them to make them feel comfortable will greatly help.

Finally, it is also worth thinking about how you are going to actually ask them. Different people prefer different forms of communication, so it is worth thinking about what the people you are going to ask prefer.

Maybe asking an aged aunt via email, who does not really use email is not such a good idea, as would texting your Dad at 11.30 pm on a Sunday night.

On the other hand, a well thought out email to a friend may work, as could asking your mum over a cup of coffee.

It all depends on the person you are asking as to which form of communication will they best respond too.