The UK guarantor loans market is certainly hotting up with more lenders joining the market all the time. Recently we’ve seen new arrivals looking to expand the loan options by broadening the pool of potential guarantors for borrowers. These new lenders are launching products where the guarantor can, for the first time, be a non-homeowner. All you need to know about non homeowner guarantor loans is in our website.
Borrow up to £7500 with a non homeowner as your guarantor
We have a good number of lenders now able to accept non homeowners as guarantors. Loans of up to £7500 are offered on this basis. As with many things in life there is a trade off to consider. If you are able to provide a homeowner as your guarantor you’ll pay a representative APR in the region of 44% to 49%. Loans where you offer a non homeowner as a guarantor are still likely to be a little more expensive (because they are considered more risky). But these rates seem to be coming down all the time. Only a couple of year’s ago when the first lender arrived in this sector the rate was 99%! We expect the gap between guarantor loan types to continue to narrow. Eventually the gap will disappear completely as lenders learn more about the market. But in the medium term if you are able to choose between a homeowner and non homeowner as your guarantor then we would still recommend you use the homeowner. For 3 reasons:
You should be able to borrow more cheaply
You stand a greater chance of getting the loan you need – there are simply more lenders available
You can borrow up to £15,000 rather than only £7500.
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