A guarantor loan is a type of loan where you’ll need to have a guarantor co-sign your loan agreement. These types of loans are perfect if you are looking to borrow a larger amount of money ($1000 – $15,000) to be repaid over 12 – 60 months. They are also a far cheaper type of loan as you are providing extra security for the lender in the form of your guarantor.
Good if you have bad credit and require a good rate
These types of loans are for people with a bad credit history and if you have someone in place who is willing to take on the loan if you failed to repay the monthly loan repayments or pay back what you owe. They are like the old fashioned type of loan where your bank manager would request a guarantor if you were taking out a loan for the first time or your had previous missed loan payments on your file and the lender wouldn’t lend to you unless you had a guarantor. Most lenders request that your guarantor owns their own home and is able to provide some type of security, you can learn more about guarantor loans and how they work here: https://www.lendingexpert.co.uk/loans/guarantor/ and http://www.mortgagechoice.com.au/home-loans/home-buying-advice/tips-and-tools/guarantor.aspx both of which are UK based sites and explain in more detail how these loans work and display a range of these type of “guarantor” lenders.
If you are interested in taking out a guarantor loan or you would simply like to learn more then please contact us and we will explain what options you have and what type of loan would be the most suitable for you.