TrustTwo Loans

No, TrustTwo’s interest rate is fixed for the duration of the loan, which can be up to five years. This is good to know because it means you can budget with confidence. Even if general interest rates rise you won’t suffer from any increase in you monthly repayments.

If your guarantor is a homeowner you will benefit from a lower APR%. Also, the rate reduces the more you borrow. But in terms of representative figures:

• Tenant guarantor loans – 49.74%
• Homeowner guarantor loans – 37.9%

Generally, TrustTwo’s rates are a little higher than some other lenders. The lowest APR from any of our lenders in 19.9% for loans of £20,000 where the borrower and guarantor own their homes. We have others around the 29.9% mark. If these are of interest then apply here.

Repayments are set up using a direct debit and paid on a monthly basis. The amount you repay will be specified by TrustTwo before you sign any agreement. While you can estimate your repayments using our calculator the TrustTwo APR is 37.9 – 49.7% rather than our representative 39.9% so be careful when looking at affordability. If your monthly payment fails then TrustTwo will always get in touch to help resolve the problem.

As with debt of any kind the first thing to do, if you are beginning to struggle with payments, is to contact TrustTwo. They are duty-bound to help look at alternative ways to ease your repayments and make them affordable. You do need to keep in mind though that you have signed an agreement with TrustTwo. If they cannot contact you then they will contact your guarantor to help settle your account.

You will be credit checked before any documents are signed as TrustTwo need to know you are creditworthy. But once the agreement is signed and the borrower starts to make their monthly repayments you should hear nothing from them. However, if the borrower is struggling to make payments and then fails to keep in touch with TrustTwo or defaults then you will be needed to step in. If you fail to help bring the loan up to date then this will be recorded on your credit file too.

Yes, with Trusttwo you are free to reduce or clear your loan at any time. They state that you should get in touch with them if you wish to do this so that you can obtain a settlement figure. It is not clear if there are any fees for early settlement or for additional payments. Generally speaking, if you should suddenly be able to pay off a chunk of your loan then that will save you further interest costs and reduce the overall cost of your loan. We’d always recommend doing this if you can afford it.

TrustTwo doesn’t appear to be as fast as some other lenders. They say they aim to get a loan paid out within 3 working days of a successful application, whereas other lenders typically claim they can do it the same day. The time to approve an application will depend on a number of factors. For instance what if any extra documentation is required and if your guarantor is accepted. Once your loan is approved the money is transferred to your guarantor’s account who then passes it to you. Money is paid via your guarantor as part of anti-fraud processes.

Well, TrustTwo is not the only lender in town. In fact, there are numerous UK guarantor lenders. Our free enquiry service can instantly tell you which of the many lenders we work with could lend to you in principle – and many of these other lenders can offer lower APRs and larger amounts than TrustTwo. If you’d like to maximise your chances of a guarantor loan then use our enquiry service – no fees, and exactly the same deals as going direct!

Typically you need to find someone who knows you well enough for them to trust you – this is a form of “trust-based” lending. So with this in mind your ideal guarantor is likely to be: Parents, Brothers & Sisters – Aunts & Uncles – Sons & Daughters – Grandparents – Boyfriend or Girlfriend – Work Colleagues & Friends. TrustTwo won’t allow a spouse to be your guarantor as they are likely to be financially linked to you.