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Guarantor Loans to £15000

Estimated Repayment

Monthly Payment:
£
Total Repayable:
£
Representative APR:
39.9 %

Your actual APR will depend on: your loan amount, the lender you choose, if your guarantor owns their home, etc.

Less than perfect credit accepted

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Representative Example

Borrow £3,000 for 36 months. Representative 39.9% APR fixed. Monthly payment £144.16. Annual interest rate 34.05% fixed. Interest payable £2189.76. Total repayable £5,189.76.

Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk

What is a Guarantor Loan?

A guarantor loan is a personal loan where someone guarantees to make a borrower's repayments if the borrower cannot. For example parents, siblings or a close friend could act as a guarantor. Most often a borrower would use one if they have credit problems and have been turned down by other lenders.

Why Consider a Loan with a Guarantor?

  • Loans are designed for people with a bad credit history or borrowing for the first time
  • You are more likely to be accepted for credit with someone supporting you
  • Loans are unsecured – so you are not exposing your assets to as much risk as you would be with a secured loan

A father (the guarantor) with his daughter (the borrower)

Is a Guarantor Loan Right for You?

There are many options to get an unsecured loan - from banks, building societies and other lenders. But if you’ve missed many repayments when you borrowed before, or if you’ve never taken out a loan or credit card (i.e. you don't have any credit history), you might struggle to get one.

You may be rejected, no matter how many lenders you apply to, and even if you’re successful, you might just get a loan that’s painfully expensive.

However a guarantor loan may allow you to get an unsecured loan at a more reasonable interest rate (what lenders call the APR – the annual percentage rate). The lender will be able to offer you a lower APR because you provide a guarantor.

This guarantee reduces risk for a lender, and enables you to borrow at more affordable rates – and avoid potentially larger repayments down the line.

Still unsure? Check and explore other loan options on our main website.

How to Find the Best Guarantor Loans

First, think about how much you can repay each month that’s affordable for you. Then you need to look for a loan with the lowest total repayments. The cost of your loan is affected by four things:

  • Loan amount: the more you borrow the more you have to repay. Our lenders offer loans in the range of £500 to £15,000. Only borrow what you really need. This will help to lower your cost.
  • APR: this is the interest rate and the higher it is the higher your monthly repayments and the total amount you will repay. You need to check your budget can afford these monthly payments.
  • Loan term: the longer you borrow for the more interest you will pay. Try to keep this to a minimum to ensure you pay as little as possible.
  • Your lender: different lenders offer different APR% for a given loan amount. We can help you find the cheapest lender.

Use our loan calculator to estimate your monthly repayments. Then you can better judge if your loan is affordable.

Who can be a guarantor?

Your guarantor can be anyone who feels they know you well enough. For example your guarantor could be a family member or a close friend. Whoever you choose needs to:

  • Be at least 18 years old (though some lenders need them to be over 21)
  • Have minimum income from either their employment, pension or investments
  • Have a fair to good credit history
  • Be someone who is not your spouse and is not financially linked to you

Remember your guarantor may have to make repayments on your behalf so make sure they understand their responsibilities. Here's plenty of information about being a guarantor, and answers to questions your guarantor will probably ask you

Why choose Solution Loans?

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 matching service makes sense:

  • We’re free to use and there’s no obligation
  • We cover all the UK's best known lenders, giving you the widest choice
  • A single enquiry typically generates 3 to 4 loan offers in principle
  • Our short form takes just 60 seconds to complete
  • You get the same deals as going direct, but much quicker!
  • You can instantly complete your loan application after choosing your lender

How Guarantor Loans Work

This video explains how a guarantor loan works. Here's more information about how to get a guarantor loan.

Answers to Frequent Questions

You may have a number of questions about guarantor loans. To help you out we’ve prepared FAQs for borrowers and FAQs for guarantors.

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Written/Updated by:

Reviewed by: Marcel Le Gouais

Review date: 06 Aug 2019