Non Homeowner Guarantor Loans

From our panel of over 35-lenders we’ve loans that are:

1. Available to tenants
2. For people who don’t own their own home (living with parents etc.)
3. ‘Unsecured’, so not secured against a property or vehicle.
4. For those with a less than perfect credit score.
5. For those who do, and do not have a guarantor.

They are typically the best value loans for tenants with a poor credit rating 👍

• Lenders don’t look so much at the status of the applicant but the person backing their application (see criteria for more details)
• It’s typically not a problem if the applicant doesn’t own their own home and has poor credit, so long as the loan is affordable for them.
• These are the people this type of loan was designed for.
• The applicant needs 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 don’t have to be a homeowner – see more info here.

They could be suitable 👍

• If they have a clean credit file
• Have a suitable regular income so the repayments are affordable to them if you ever defaulted.
• Meet the guarantor criteria

See ‘Who can be a guarantor for a loan’

YES 👍

You can use the funds for whatever purpose you wish
(so long as it’s moral & legal)

• If you’re a tenant, remember to get your landlords permission before making any alterations, if you don’t:
  • Changes may be against the terms of your tenancy agreement, plus
  • You may be required to return the property to its original condition at the end of the tenancy!
• Many people also use the funds for
  • Consolidating more expensive debt
  • Emergencies
  • Car purchase or repairs
  • Travel
  • and more...

UK data says that defaults are higher for tenants compared to homeowners 🤔

• Not a reflection on you or your backer, but unfortunately lender underwriting criteria.
• However good rates still available from 47.8% APR.

YES 👍

However, the best deals are for people who can find a guarantor

• You’ll need to show the loan is affordable
• You cannot be insolvent (in an IVA, bankrupt, Trust Deed etc.)
• See What’s the criteria

Estimate your loan repayments with our loan calculator, but to get an accurate quote and to find out exact loan repayments

• Submit your details to the lenders via our loan apply form
• No cost, obligation, or impact on your credit file at this stage.