How to get low APR guarantor loans?

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The lower the loan interest rate the less you will pay.

It makes no sense to pay more than you need to for anything, especially a loan.

We look at how you can save as much money as possible by paying the minimum rate necessary.


There is quite a range of guarantor loans now available in the UK, with representative APRs ranging from 39.9% up to 302%.

Knowing what criteria you and your guarantor must meet and the lenders to go for will help you in your quest to find the very cheapest loan.

1. The cheapest lender

Currently the lender with the lowest rate loan on the guarantor market is Guarantor My Loan.

They have a £1,000 to £10,000 loan, which can be spread across 12 to 60 months at a rate of 39.9%*.

Just behind them is 1 + 1 loans, who offer £500 to £5,000 loans at a rate of 45.4% over 12 to 60 months.

* Correct at the time of writing (21/09/18).

However, in order to get these rates you will have to meet some fairly tight criteria.

2. The criteria you need to meet

In order to qualify for these loans, both you and your guarantor need to be homeowners and not financially linked. In other words, you do not have joint bank accounts, mortgages etc.

Other criteria includes:

  • there must be no mortgage arrears for the last six months
  • Maximum age of 70 for both you and your guarantor
  • You and your guarantor need to be over 18

For greater details of the criteria and the lender please see our Guarantor My Loan page.

Other Options

We do realise that there are many people for whom this loan will be out of reach especially if you are a tenant.

The good news is that even if you do not qualify for the very cheapest loans, there are other solutions for you.

The best way to identify your options for your own personal circumstances is to review our lender table where you can filter the loans according to various criteria.

Alternatively we have a system called ‘Best Loan for You’. Simply go to our Apply form, enter in your details, and our automatic system, based on your criteria, will search out the very best lender for you, based on both cost, and our Optio Score.

For more information, see our page Guarantor Loans Low APR.