- Borrow £1,000 to £10,000
- Representative 49.9% APR
- No Fees
- Same day payout
About Buddy Loans
Buddy Loans opened in 2013 as one of the new wave of guarantor loan lenders entering the UK market. With high street banks tightening credit and Amigo becoming more prominent Buddy arrived on the scene too.
Over time it has developed its product offering – it now offers loans up to £10,000 and is prepared to accept non-homeowners as guarantors. They are now well established and garnering good reviews from borrowers.
|Representative APR||Loan Term (months)||Loan Amount (£)|
|49.9%||12 – 60||1,000 – 10,000|
Buddy Loans scores 4.5 out of 5 based on 3,000 reviews on TrustPilot. This score puts Buddy slightly lower down the rating spectrum than the typical guarantor loan lender. Rate and review them now.
Compare Buddy Loans to Others
For clarity here are the key differences of Buddy to the “typical” or “average” guarantor loan lender:
- The same APR% regardless of loan size and loan period which could be an advantage if you need a smaller loan for a shorter period.
- There are 6 lenders with a lower APR% available dependent on loan value and duration.
- The maximum loan size of £10,000 is lower than many.
- Average customer rating is marginally lower.
Buddy Loans’ representative APR is 49.9%, but we have lenders who offer guarantor loans starting at 19.9%. As a broker with access to multiple lenders, we may be able to find you loans like Buddy’s at a lower rate.
Buddy’s Representative Example
Borrow £3,250 for 36 months. Representative 49.9% APR fixed. Monthly payment £158.57. Interest payable £2,464.67. Total repayable £5,714,67.
We’ll Find Your Loan
Why trudge from one lender website to the next when Solution Loans can find you the cheapest deals instantly? It’s simple to see why using our comparison service makes sense:
- We’re free to use and there’s no obligation!
- We have the widest choice of UK lenders
- An enquiry typically generates 3 to 4 loan offers (in principle)
- Our form takes just 60 seconds to complete
- It’s quick and easy to compare lender offers
- The same deals as going direct, but quicker!
- Instantly complete your chosen loan(s)
- Sign your loan agreement online to get the funds fast
Buddy Loans is a trading style of Advancis Ltd, Alexandra Court, Carrs Road, Cheadle, Cheshire, SK8 2YJ. Company registration number 08089541.
Buddy is authorised and regulated by the Financial Conduct Authority with firm reference number 718849.
ICO Data Protection Registration
Advancis Ltd is registered with Information Commissioner, registration number Z3239423.
News about Buddy Loans
Guarantor Loans Guide
If you’re uncertain which type of credit might suit you or you have a money problem then one of guides may help you. We summarise each type of loan and their pros and cons, and address issues regarding debt and credit ratings.
FAQs about Buddy
It used to be that Buddy required your guarantor to be a homeowner for larger amounts. But this is no longer the case. While being a homeowner may help the borrower’s application the main requirement is for the guarantor to show that they could repay the loan on behalf of the borrower if called upon to do so.
No, Buddy’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 your monthly repayments.
The APR is fixed at 49.9% regardless of the amount you borrow or the length of time you borrow it for. Buddy’s rate is now higher than for some other lenders. We work with some who vary the APR so that it is higher for smaller amounts and lower for larger amounts. So, it could be that for smaller loan amounts (say £1,000 or £2,000) Buddy is a reasonable option. Conversely, on larger loans (over £7,500) we could have lenders that offer a lower APR. The lowest APR from any of our lenders in 19.9% for loans o £20,000. If you’d like us to find you a lower rate 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 Buddy before you sign any agreement. While you can estimate your repayments using our calculator the Buddy Loans APR is 49.9% rather than our representative 39.9% so be careful when looking at affordability. If your monthly payment fails then Buddy 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 Buddy. 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 Buddy. 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 Buddy 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 Buddy Loans. However, if the borrower is struggling to make payments and then fails to keep in touch with Buddy 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, Buddy Loans has no prepayment clauses in its contracts. This means you can repay your loan early without incurring any penalty payments. So, 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.
Buddy aim to approve a loan application within 24 hours. This will depend on what if any 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, Buddy Loans are not the only lender in town. In fact there are numerous UK guarantor lenders. While Buddy are not yet part of our panel our free enquiry service can tell you instantly 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 Buddy Loans. If you want to apply specifically to Buddy please apply direct, but if you’d rather 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. Very often lenders like Buddy are not prepared to accept guarantors who are already financially linked to the borrower. For example, if you have a spouse and own assets together (e.g. a house) or indeed have joint debts. Lenders may also reject guarantors if they have joint costs with you (e.g. you live together and share the payment of joint bills).
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