Guarantor Loans

Borrow up to £15,000 with the help of a guarantor to co-sign your loan agreement.

A guarantor loan is a type of unsecured loan where you can borrow between £500 and £15,000 over 1 to 7 years. You require an extra person you know to co-sign the loan agreement who will agree to repay just in case you can’t.

Simply use our comparison table below and click on the lender of your choice. You will be required to fill in some information about yourself and your guarantor. Provided your application is successful, you can receive funds in one lump sum within 24 to 48 hours of approval.

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Order your lenders by
Representative APR
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Who Can Be Your Guarantor?

Each guarantor loan lender is different, but usually your guarantor needs to be between 18 and 75 years old with a good job and a sound financial past.

They can be a friend, a work colleague or a family member – Most lenders require their monthly earnings to be high enough to comfortably meet any potential repayment shortfall.

Be aged between
18 and 75
Be a UK Homeowner**
Have a good Credit Score
Not financially linked to the borrower
Have a minimum monthly income of £800
Have a UK bank account

Guarantor Loans – How To Apply

To apply for a guarantor loan, simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including name, residence, employment status, income and expenses.

You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.’

Above all, having a guarantor that is a homeowner will significant increase your eligibility for approval and also help you borrow the amount you need. This is because guarantor lenders see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you. Furthermore, if they have a residence with bricks and mortar, they are going to be easier to contact than a tenant and are less likely to go awol. Plus, someone with a home can always raise finance if need to be to repay your loan, such as getting a second mortgage or renting out a room.

Guarantor Loans – Funding Within 24 to 48 Hours

We understand that when people are applying for finance, they usually want it quickly. Upon completing an application, the lender will typically send you an online loan agreement and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.

The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).


When your monies are successfully transferred, most lenders will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges. In the case of some parents or guardians, they may decide to distribute the funds to the borrower in instalments or smaller amounts to help them manage it better – you have flexible options. But for the lender that is transferring £5,000 or £10,000, they know that it is definitely being sent to a person with good credit so they should get it back. Then, every month, repayments will be collected from the main beneficiary’s debit account, as agreed.

Guarantor Loans For Bad Credit

Guarantor lending offer those with bad credit the chance to get the finance they need. The lender believes that if you have a guarantor with a good credit rating and they are willing to trust you, well they can trust too.

If the customer is able to show that they can make recurring monthly repayments, the information will be sent to the UK’s credit reference agencies and this will help improve their credit rating.

Loans with a guarantor are typically used for lifestyle purchases such as moving home, purchasing a car, weddings, education and home improvements. This type of finance should not be used for unnecessary and frivolous spending as this could lead to more debt.

We ensure that all the lenders featured on our website have a valid Consumer Credit License and follow the strict regulation of the Financial Conduct Authority.

Guarantor Loan Renewal Policy

Although we do not suggest the renewal of a Guarantor Loan, if you wish to do so, you must contact your chosen lender directly and immediately. You will most likely be charged the same rate of interest or fees for an extra month; however, this will be charged on the full amount that you owe to the creditor, which is the amount borrowed, plus first month’s interest. Please make sure that you only take out a loan if you can afford to pay it back in full according to the repayment schedule.

Guarantor Loans Collections Process

If you are worried about making a re-payment, contact your chosen lender directly. If the situation remains unresolved (non-repayment of loan) because you have not arranged payment options with your lender, the lender can request repayment from your guarantor. In escalated cases, the lender has the right to pass your details onto a third party collections agency. This agency will then work to recover the amount overdue (plus any interest accrued in this time as a result of your non-payment).

Implications of Late Payment

You must contact your lender directly if you feel you are unable to meet your re-payment schedule. You could incur a higher fee or charge if you do not contact your lender, as it may be assumed that you are not willing to re-pay your guarantor loan in its entirety. However, some lenders state that they do not charge or increase fees for late payments. Please check your chosen lenders terms and conditions and/or loan agreement for more information.

Non-Payment Implications

We always suggest re-paying your guarantor loan on time in order to avoid paying more than your original agreed amount. You could be subject to fees and penalties, if you do not make your guarantor loan re-payment on time, this is at the discretion of your chosen lender. Please see your loan agreement and the lender’s terms and conditions for more information outlining any further charges and their related reasons for these charges.

Guarantor Loans is a licensed credit broker and not a lender

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