You’ve probably heard lots about Guarantor Loans in the last few years, particularly since Amigo Loans started advertising on TV and radio in 2012. Their popularity stems from the fact that even if you have some sort of historical credit problem you will be considered for an unsecured loan. High street banks and building societies have become notorious for rejecting all but the most prime of prime borrowers. On the other hand a guarantor loan, where you provide someone to guarantee your borrowing and repayments, can give you access to the unsecured credit you need.
In the early days there were just a couple of lenders who would only lend up to £3000 and only if the guarantor was a homeowner. This made the product very niche. It was only after the 2008 banking crisis that interest really began to grow – both from potential borrowers and lenders. We witnessed the growth in the number of lenders and this triggered proper competition. Maximum loan values started to grow and the the criteria for both borrowers and guarantors began to evolve. For instance lenders found a way to accept guarantors who did not own their home. And now APR’s are beginning to fall with a couple of our lenders having APR’s starting at lower than 30%.
Guarantor Loans via Solution Loans
Solution Loans has championed these loans with a guarantor since 2005. In fact we were one of the very first online credit brokers to include this product in our portfolio. Over the years more and more lenders have wanted to partner with us and now we have probably the broadest panel of guarantor loan lenders in the UK. We certainly have the greatest heritage and longest of lender relationships.
So, looking across our range of lenders, what can a guarantor loan offer you?
The ability to obtain unsecured credit:
even if you have a credit problem of some kind
even if you don’t own your home (and homeowners can get this credit too of course)
Credit paid out within 24 hours of your loan application being accepted
Where the guarantor is a homeowner loans of up to £15,000
Where the guarantor is a non-homeowner loans of up to £8,000
APRs in the range 26.9% to 49.9% (representative APR 39.9%)
Short term loans of up to £750 with APR’s considerably lower than those of payday loans
Why use Solution Loans for your Guarantor Loan?
One enquiry gives you immediate access to a wide range of lenders
Typically your enquiry will generate 4 loan offers in principle
Smooth customer journey that can immediately continue to your chosen lender
most lenders provide e-signature signing option for fast loan processing
No broking fees & no obligation on your part
Our broad panel means we have lenders who can accept homeowners and non-homeowners
Amanda Gillam is Solution Loans's General Manager and has been since 2009. She is also a prolific writer on personal finance issues, and has been quoted numerous times in articles published on 3rd party websites and in press releases. Her...Read more about Amanda Gillam