TFS Loans scores 4.7 out of 5 based on 100 reviews on Feefo. This score puts TFS Loans in the middle of the guarantor lender rating spectrum. They have also won a number of awards for their service and business excellence.
We've chosen to show the key differences against the "typical" or "average" guarantor lender:
TFS Loans' rates start at 29.9% for loans over £10,000. At a more typical loan size of £5,000 their rate is 39.9% which is the lowest available (only one lender can match this). This calculator uses our representative APR is 39.9% to help you estimate monthly repayments.
Your actual APR will depend on: your loan amount, the lender you choose, if your guarantor owns their home, etc.
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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.
TFS Loans was one of the early entrants to the UK guarantor loan market. They started in 2010 but really got into their stride in 2013. They are now well established and receiving good reviews from borrowers.
Borrow £5,000 for 36 months. Representative 39.9% APR fixed. Monthly payment £223.60. Annual interest rate 20.33% fixed. Interest payable £3,049.60. Total repayable £8,049.60.
Yes, your guarantor must be a homeowner. We have plenty of other lenders where this is not the case. We have more information about non homeowner guarantors.
No, TFS Loans' 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.
TFS's rates move on sliding scale - the more you borrow the lower the rate you will pay. On loans of £10,000 or more the rate is 29.9% APR. At a more typical loan value of £5,000 the APR is 48.9%, and for small loans of £2,500 or less the rate is 69.9%. These rates are highly competitive in the guarantor loan market. But we work with many other lenders too. Different lenders occupy the "best rate" slot at different loan values. To discover the best rate for you apply here.
Repayments are set up using a direct debit and paid on a monthly basis. You can also make one off payments. The monthly amount you repay will be specified by TFS before you sign any agreement. You can estimate your repayments using our calculator (representative 39.9% APR) but TFS's rates work on a sliding basis - you may pay a higher or lower rate than this. If your monthly payment fails then TFS Loans 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 TFS. 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 TFS. If they cannot contact you then they will contact your guarantor to help settle your account.
The search of your credit file done by TFS as part of the application process will remain on your credit file for 12 months. This will affect your credit score for this short period. Once the credit agreement is signed and the borrower starts to make their monthly repayments you should hear nothing from TFS Loans. However, if the borrower is struggling to make payments and then fails to keep in touch with TFS 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.
You can make one off payments with no penalty. Ordinarily these additional payments will go to shorten your loan rather than reduce future monthly payments. If you want to reduce the interest and therefore future monthly payments your extra payments must be larger than £500. If you want to pay off the entire loan early be aware that you may incur a charge of up to 58 days interest. You should contact TFS to obtain a final settlement figure before committing to early repayment. In spite of this we'd always recommend you look to pay off any debt as quickly as you can to reduce the overall interest cost.
Well, TFS Loans are not the only lender in town. In fact there are numerous UK guarantor lenders. Our free enquiry service can tell which of the many lenders we work with could lend to you in principle - and some of these other lenders may offer lower APRs than TFS Loans for any given loan value. If you want to 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 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. Typically lenders like TFS Loans aren't 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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Here's the most helpful video from the TFS Loans YouTube channel:
TFS Loans Ltd, Broom House, 39-43 London Road, Hadleigh, Essex, SS7 2QL. Company registration number 06542065.
TFS Loans is authorised and regulated by the Financial Conduct Authority with firm reference number 724439.
TFS Loans is registered with Information Commissioner, registration number Z2072584.
Written/Reviewed by: Marcel Le Gouais