Non-Homeowner Guarantor Loan Case Study

How getting a loan helped Steve’s plumbing business

This is a short story about how getting a guarantor loan helped Steve fix his van to help his business survive

Even if you do not own your own home, that does not mean you cannot get credit.

We look at how Steve got a guarantor loan to save his plumbing business


The story of Steve below is based on typical guarantor loan customer case, though the exact details are a fictional account of how a guarantor loan could be used. It is an accurate description of how a guarantor loan can help and the process involved. We hope the format of the story makes the explanation of guarantor loan easier to digest.

Dip in income and damaged credit file

Steve is a self-employed plumber living and working in Stoke on Trent.

In 2013 he was finding work very difficult to find and his income took a large dip. This drop in income lasted for about six months and over that time he missed quite a few credit card payments and unfortunately got a CCJ (County Court Judgement), which greatly damaged his credit score.

Work then picked up and he was making a good living, but with a growing family of three children, he was spending everything he earned.

Unexpected expense

This was not a problem until 2015 when his work van decided to start to ‘play up’, and the quote to fix all the problems was going to cost £1,750, which he simply did not have.

However, if he did not fix the van, he would not be able to work, the typical Catch 22.

Banks not interested

He approached his bank with whom he has banked since he was 16 (over 20 years). They said that due to his credit score they would not be able to lend him the money he needed.

Steve then went online and made a number of loan applications to banks and lenders he recognised. Unfortunately, the response was the same every time and, owing to his credit score, the application was turned down.

Expensive poor credit loans

Further research online took Steve into the area of ‘poor credit loans’ and he found that there were loans available. The only problem being that interest rates could be as high as 1,500% APR, which was going to be extremely expensive.

Less expensive guarantor loans

After searching around some more, and investigating the different types of ‘bad credit loans’, Steve discovered the guarantor type of personal loan, which interested him as the costs and interest rates were significantly lower.

Loans for tenants

After even more investigations he found that there were many types of guarantor loan available depending on personal circumstances, including loans to those who do not own their own home, which Steve does not, as he lives in a rented house with his wife and three children.

After looking through all the different lenders Steve chose the one that was going to be the cheapest for him.

Finding a guarantor

However, to enable Steve to qualify for the loan, he needed to find a guarantor with a clean credit history.
Steve’s father passed away when he was younger, but he had always had an excellent relationship with his dad’s brother.

So he went to visit his uncle armed with all the information he thought would be necessary:

  • How much he needed to borrow and why
  • How long he needed the money for and what the monthly repayments were going to be
  • Some of his own bank statement to show that he could afford the loan repayments
  • Exactly what the implications were on being a loan guarantor
  • Criteria the lender was looking for

Steve was lucky as his uncle agreed to be his guarantor, although he certainly helped himself as he had prepared everything beforehand, and was able to answer all his uncle’s questions.

Loan paid out in 24 hours

It took them both three days to collate all the documents the lender asked for, and once this was sent to the lender, the loan was paid out in 24 hours.

Steve was then able to get his van fixed, and get back to work.

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