How to get a £10,000 guarantor loan

Your Guide

In this article we discuss the £10,000 and above loans available, and what is required to qualify for one

Getting a £10,000 to £15,000 loan with a bad credit rating is now possible

We look at the steps that you will need to take to borrow ten to fifteen thousand pounds, even if you do have a poor credit history.

Introduction

In the past, if you had a less than perfect credit rating, it was very difficult to get a loan above about £3,000, plus those that were available had very high interest rates.

With the advent of the guarantor loan, much larger affordable loans are now available; the largest currently available being £15,000.

We look at the steps you will need to take to be able to successfully quality for this type of loan.

1. Homeowner

a. Borrower needs to own their own home

The loan is NOT secured against your property, though our lender that specialises in these larger loans required the stability of the borrower being a homeowner.

b. Guarantor needs to own their own home

Again, the loan is not secured against your guarantor’s property, though our lender does again require the guarantor also being a homeowner.

c. Why do we need to be homeowners if the loan is not secured on our properties?

The lenders primary concern is that the loan is paid back, on time and in full, and have found that this is more likely to happen with homeowners (statistics say they move less often).

2. Affordability

One of the key areas that a lender will look at when looking at a loan of this size, is your, and your guarantor’s ability to make the monthly payments.

To give you an idea as to the cost of a £10,000 loan see the representative example below:

a. Representative example of a £10,000 Loan

Borrowing £10,000 over 54 months, repaying £318.69 per month. Total repayable £17,209.26. Interest Rate 29.9% (fixed), representative 48.9% APR.

b. Monthly repayments for different loan sizes and lengths

To estimate what your monthly re-payments would be for different loan amounts and terms, see our loan calculator.

c. Satisfy the lender you can afford the loan

You and your guarantor will need to satisfy the lender that you can afford the monthly repayments, so they will ask details about your income and expenses, so please make sure you have these details to hand, including bank statements.

3. Other Criteria

The following list the additional typical criteria for both you and your guarantor:

a. Borrower loan criteria

• Aged between 18 to 78 (at end of the loan term)
• Not be insolvent (in an IVA, Trust Deed, or Bankrupt)
• Have a regular income
• Have a UK bank account and debit card

b. Guarantor loan criteria

• Have a clean credit rating
• Be a homeowner in the United Kingdom
• Aged between 18 to 78 (at end of the loan term)
• Have a regular income
• Have a UK bank account

4. Get a loan quote

We can help you to get a completely no obligation loan quote for up to £15,000.

Simply go to our Apply page and fill out the form which will take about three minutes.

You will then hear back from the lender giving you full details of the loan, including interest rates and terms and conditions.

By getting this quote, there is no risk to you:

a. No credit checking at this stage

At this stage you, and your prospective guarantor, will not be credit checked; though if after receiving the full loan details from the lender you decide to proceed, then at the time of the loan application you will have your credit file checked.

b. Free service - no broker fees!

There are no fees to pay for getting a loan quote, or when you take out a loan. You will only have to pay the interest to pay when you make your monthly repayments.

We only get paid by the lender if you take out a loan.

You will pay exactly the same even if you take out the loan directly though the lender’s website.

c. No obligation

Even if you do get a loan quote, there is absolutely no obligation for you to take out a loan.

Return to Loan with Guarantor

To read a related article on The Independent see: Money Insider: How to avoid the clutches of payday lenders - The Independent. 2015-05-30

Loan Calculator

Use the loan calculator below to estimate monthly loan repayments.

Approximate figures

  • Monthly repayments from to . Total repayable from to . Representative APR's from to

Click to see all our lenders Representative APR's

This tool is for GUIDANCE ONLY. It is designed to help you estimate loan repayments. It uses the representative APR of each product. Lenders have a duty to conduct affordability checks when you apply for a loan, see Responsible Lending.

Compare Loans

Click below to compare all our different loans from all our different lenders.