A new product has been launched this month which allows a Borrower take a Guarantor loan of up to £1,000 but does not require the Guarantor to be a Home Owner. This is the first Guarantor loan product in the UK since the credit crisis began that foregoes the need for the Guarantor to be a home owner and allows the guarantee to be based solely on the Guarantor’s credit rating. Representative APRs for the loans will be at 53.8%
Up until now the existing Guarantor Loan products in the market allow up to £5,000 to be borrowed but required the Guarantor to be aged 25-72, live and own a home in Great Britain and be of sound credit standing. This requirement for the Guarantor to be a Home Owner is what has scuppered many loan applications previously and there was simply no option for a Borrower to use a tenanted Guarantor. Though the maximum loan amount is capped at £1,000 this new loan product will allow Borrowers leverage off the good credit standing of other family members, friends or work colleagues to get credit themselves and in making their repayment, rebuild their own credit record. It is another step in the ‘normalisation’ of the lending market and is to be welcomed as it opens the option of credit to a new raft of previously disenfranchised Borrowers.
To apply for a £1,000 Guarantor Loan using a Tenant as a Guarantor (or a loan of up to £5,000 using a Home Owner as a Guarantor), please go to our simple Guarantor Loan application form here http://www.choice-loans.co.uk/guarantor-loan.php