Requirements for a Guarantor

Lenders require that people meet a certain set of criteria for them to be used as a guarantor by a borrower. These are the typical criteria although they do vary slightly by lender and therefore it is worthwhile making an online enquiry so that you can find out the very specific lender requirements:

• Are a UK Homeowner
• Are over 23 years old up to and including older retirees (i.e. in their 70s)
• Have good or slight imperfect credit history
• Have a debit (or possibly a credit) card
• Have a monthly income of at least £800 per month (inc. pension)

Recent analysis has shown us that more than 10% of people who actually take out a no credit check loan did not initially think they would be able to find a guarantor. So, if you think this could be a challenge don’t give up – look around at your family, relations, close friends, and work colleagues. Hopefully you’ll be surprised about how many people know you well enough for them to be prepared to be your guarantor.

We get some very specific questions about what defines an ideal guarantor – here are some of them and the answers we gave:

1. I have a suitable Guarantor, however, he does NOT have a “Debit Card” – it may be possible to accept a guarantor who only has a credit card. Please enquire via our form.
2. I am thinking of applying for a loan with a Guarantor. However the person in mind whilst not being a homeowner does pay the mortgage – the person you want as a guarantor must be a UK homeowner and not just the payer of the mortgage. i.e. the house must be in their name and they must be the sole owners.
3. Can a person act as a guarantor for me if they are already acting as a guarantor for someone else – a person can only act as a guarantor for one person at a time.
4. Could my husband be my guarantor – so long as the property is owned solely by him this should not be a problem.
5. Please could you advise if you accept a guarantor who is over 60 and retired – almost certainly so long as they also meet the other general criteria (see above)
6. Can my employer be a guarantor for my loan – yes, so long as they meet the criteria above
7. If the guarantor is a UK homeowner, does this mean my loan is secured against the guarantor’s property – no, this loan is completely unsecured.
8. Is the loan in my name or in the guarantor’s – no, the loan is in your name, not the guarantor’s.
9. Please could you tell me as soon as possible if someone is able to act as a guarantor for someone if the guarantor is a home owner but their home is subject to a freezing/restraint order pending legal proceedings – If a charge is registered against the guarantor’s property then it suggests bad credit for the guarantor in question in which case we’d advise them to find an alternative to avoid disappointment.
10. My proposed guarantor is a pub owner and is not classed as employed. Is this any good – your guarantor must satisfy all the criteria above.
11. My proposed guarantor has been rejected by the lender because of their credit status. Please tell me more – due to the data protection act you will have to take this up directly with the lender.
12. Can the guarantor I select live at the same address as me – yes, so long  as they meet all the criteria above.

There are many alternatives places you could look for your loan guarantor – but the most important thing is that they know you well and are likely to trust you. Think about members of your wider family, close friends who you see regularly, and even  people you work along side. Once you have a list, then think about the criteria above. You’ll probably find you have a number of people you can approach about becoming your guarantor.