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Alternatives to Buddy Loans

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Lender Ratings & Verdict

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.

Buddy vs Other Lenders

We've chosen to show the key differences against the "typical" or "average" guarantor lender:

Pros

  • 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.
  • Full online account management is available unlike some other lenders.
  • Online application process is relatively fast.

Cons

  • 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.

Compare Buddy to other Guarantor Loans

Buddy Loans' representative APR is 49.9%, but we have lenders who offer guarantor loans starting at 29.9%. As a broker with access to multiple lenders we may be able to find you loans like Buddy's at a lower rate. This calculator uses our representative APR is 39.9% to help you estimate monthly repayments.

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.

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. They are now well established and garnering good reviews from borrowers.

  • Loans from £1,000 to £10,000
  • Repay over 12 to 60 months
  • Representative APR 49.9% (fixed)

Buddy Loans' Representative Example

Borrow £3,250 for 36 months. Representative 49.9% APR fixed. Monthly payment £158.57. Annual interest rate 41.16% fixed. Interest payable £2464.67. Total repayable £5,714.67.

 

Buddy Loans FAQs

Q

Does Buddy Loans need my guarantor to own their home?

A

Only for larger loan amounts does Buddy require your guarantor to be a homeowner. This gives them a little more confidence that their lending is safe. We have more information about non homeowner guarantors.

Q

Does Buddy charge a variable interest rate?

A

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 you monthly repayments.

Q

What is Buddy Loans' APR%?

A

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 a little higher than some other lenders. We work with some lenders who vary the APR so that it is higher for smaller amounts and lower for large amount. 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 29.9% for loans over £10,000. If this is of interest then apply here.

Q

How do I repay Buddy?

A

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.

Q

What if I can't repay my Buddy loan?

A

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.

Q

How will being a guarantor for a Buddy loan affect me?

A

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.

Q

Can my Buddy loan be paid off early?

A

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.

Q

How fast can Buddy approve and payout my loan?

A

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.

Q

What's the best way for me to get a Buddy loan?

A

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!

Q

Who can be my guarantor for a Buddy loan?

A

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)..

How to Find Buddy Loans

Office Address: Alexandra Court, Carrs Road, Cheadle, Cheshire, SK8 2YJ

Office Hours

Mon - Thu: 09.00 - 19.00

Fri: 09.00 - 16.30

Sat: 10.00 - 14.00

Buddy Loans on Social Media

Twitter

Here are Buddy's most recent tweets:

YouTube

Here's the most helpful video from the Buddy Loans YouTube channel:

Company Information

Company Registration

Buddy Loans is a trading style of Advancis Ltd, Alexandra Court, Carrs Road, Cheadle, Cheshire, SK8 2YJ. Company registration number 08089541.

FCA Registration

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.

Important Buddy Loans Links

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