Guarantor loans for the non-homeowner
Loans are available
The credit status of your loan backer is more important than yours
So if you are a tenant but have a guarantor with a clean credit file and regular income then read on as you may have plenty of
Your loan backer’s income, employment and credit history is more important than if they are a homeowner
Our lenders offer options for those whose guarantors do not own their own homes, though you should note that the most competitive APRs and largest loans are only available to those who do.
How it Works
With this type of loan, the lender does not look at the status of the applicant but the person who is backing their application.
So it is not a problem if the applicant does not own their own home and has a poor credit, these are exactly the sort of people this type of loan was designed for.
It is key for the applicant to find a loan backer, someone with a good credit history to support their application, usually a family member or friend.
The main criteria for the loan backer is to have a clean credit file and a regular income; they do not have to be a homeowner, but the best rates are available to those who are.
Frequently asked questions
This is not a problem, as long as they have a clean credit file and a suitable regular income; though unfortunately you will not qualify for the lowest rate loans.
Lenders look at statistics when deciding upon their loan rates, and statistics say that loan failure rates are higher for tenants compared to homeowners. That is not a reflection on you or your backer, but unfortunately just the lender’s own research statistics within the UK.
We have partnered with the very best lenders in the UK, and a list of all the lenders and their loans can be found on our compare loans page.
It is worth spending a bit of time looking through this page for it will also help you to understand the different options that you have available.
You will not be credit checked when you fill out the loan apply form on guarantorloansuk.net.
At this stage your details will be sent to the lenders and they will contact you with their quotation.
At this stage you, or your guarantor do not get credit checked.
If you decide to take out a particular loan, then both you and your guarantor will be credit checked, but only after you have made a formal loan application with the lender.
We are a free service to use, we get paid by the lenders if you take out a loan.
Loans via us will cost you the same as if you went to the lenders directly. For more information, please see how we get paid.
For more detail please see out dedicated page What is a Guarantor Loan?
For much greater detail please see our page Being a loan guarantor
- Three ways to help your kids get on the property ladder without handing over a huge sum of cash - This is Money. 2016-02-20
- 5 smart ways to rid yourself of debt - CNN Money. 2016-08-03
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