In-depth guide to Guarantor Loans
- 5 years ago
This video explains what guarantor loans are and how they work.
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▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Guarantor Loans: https://www.solution-loans.co.uk/guarantor-loans/
- Guarantor Loans: https://guarantor-loans.co.uk
- The definitive guide to guarantor loans: https://www.solution-loans.co.uk/blog/definitive-guide-guarantor-loans/
- How guarantor loans have changed: https://www.solution-loans.co.uk/blog/guarantor-loans-changed-consider-one/
- Kickstart your business with a guarantor loan: https://www.solution-loans.co.uk/blog/kickstart-your-business-guarantor-loan/
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▶️ VIDEO TRANSCRIPT
Guarantor loans may not be new but their recent growth has opened up an avenue of credit for people who are finding it hard to obtain it. This may be because they have not built up sufficient credit history or because they have made some mistakes in the past which have resulted in a lower credit score. Repayment terms for guarantor loans are longer than for either payday or instalment loans and so offer correspondingly lower APRs. The loan is backed by a third party - a guarantor - who promises to repay the credit should the borrower fail to keep to the terms of the loan agreement. By having a third party guarantee the loan repayment schedule, the lender does not have to consider the creditworthiness of the borrower. A guarantor loan is unsecured so that no assets are put at risk.
Guarantor loans are generally available for amounts from around £1,000 to in excess of £12,000 with repayment periods from one year to more than five in some cases. They differ from standard unsecured loans in that there are three parties to the agreement - the lender, the borrower and a guarantor. By signing the credit agreement, the guarantor commits to making the loan repayments or settling the loan should the borrower be unable to keep up with the loan repayment schedule.
A guarantor can be anybody as long as they don’t have a direct financial link with the borrower which excludes spouses or partners. Most lenders will look for a guarantor to be 21 or over, have a good credit history and, in some cases, be a UK homeowner. Many lenders will now lend to borrowers with guarantors who don’t own their home provided that this person has a good credit record. In both cases, even though the lender may not place huge emphasis on the borrower’s credit history, it will still expect them to demonstrate that they can keep up with the repayments.
If you’re new to the credit market and don’t have a sufficient credit history or if past difficulties have left you with a less-than-good credit rating, it can be difficult to raise the money for larger purchases like...
------
▶️ ON OUR WEBSITE & "MONEY MATTERS" BLOG
- Guarantor Loans: https://www.solution-loans.co.uk/guarantor-loans/
- Guarantor Loans: https://guarantor-loans.co.uk
- The definitive guide to guarantor loans: https://www.solution-loans.co.uk/blog/definitive-guide-guarantor-loans/
- How guarantor loans have changed: https://www.solution-loans.co.uk/blog/guarantor-loans-changed-consider-one/
- Kickstart your business with a guarantor loan: https://www.solution-loans.co.uk/blog/kickstart-your-business-guarantor-loan/
------
▶️ SOCIAL
Like us on Facebook: https://www.facebook.com/SolutionLoanUK
Follow us on Twitter: https://twitter.com/solutionloansuk
Follow us on Instagram: https://www.instagram.com/solutionloans/
Website: https://www.solution-loans.co.uk/
Subscribe to our YouTube channel: http://bit.ly/solutionloansYT
------
▶️ VIDEO TRANSCRIPT
Guarantor loans may not be new but their recent growth has opened up an avenue of credit for people who are finding it hard to obtain it. This may be because they have not built up sufficient credit history or because they have made some mistakes in the past which have resulted in a lower credit score. Repayment terms for guarantor loans are longer than for either payday or instalment loans and so offer correspondingly lower APRs. The loan is backed by a third party - a guarantor - who promises to repay the credit should the borrower fail to keep to the terms of the loan agreement. By having a third party guarantee the loan repayment schedule, the lender does not have to consider the creditworthiness of the borrower. A guarantor loan is unsecured so that no assets are put at risk.
Guarantor loans are generally available for amounts from around £1,000 to in excess of £12,000 with repayment periods from one year to more than five in some cases. They differ from standard unsecured loans in that there are three parties to the agreement - the lender, the borrower and a guarantor. By signing the credit agreement, the guarantor commits to making the loan repayments or settling the loan should the borrower be unable to keep up with the loan repayment schedule.
A guarantor can be anybody as long as they don’t have a direct financial link with the borrower which excludes spouses or partners. Most lenders will look for a guarantor to be 21 or over, have a good credit history and, in some cases, be a UK homeowner. Many lenders will now lend to borrowers with guarantors who don’t own their home provided that this person has a good credit record. In both cases, even though the lender may not place huge emphasis on the borrower’s credit history, it will still expect them to demonstrate that they can keep up with the repayments.
If you’re new to the credit market and don’t have a sufficient credit history or if past difficulties have left you with a less-than-good credit rating, it can be difficult to raise the money for larger purchases like...