From today you can use non homeowner guarantors – your guarantor does NOT have to own the house they live in! This is a huge change and one that is likely to make it much easier for you to be able to obtain a guarantor loan.
For years it has been a requirement that for loans over £500 the guarantor must be a homeowner. But one of the major lenders has just announced that it no longer needs to make this a necessity for loans up to £5000. This change will undoubtedly shake up the market and we should see all lenders gradually move in this direction.
Your non homeowner guarantors will still need to have a good clean credit history but it’s great to know that your guarantor can now be a tenant, be living with friends or indeed living with their family. People often tell us that they can get a guarantor but they aren’t a homeowner. In the past there was nothing that could be done to help; now borrowing should be a whole lot easier. See the full list of lending & guarantor criteria. It’s worth noting that providing a guarantor who is a homeowner will still mean you can borrow more and borrow at lower rates, but as we have said it is no longer mandatory.
Summary of Non Homeowner Guarantor Loans
- Loans of £1000 to £5000 unsecured
- Borrow for between 12 and 60 months
- Representative 59.5% APR fixed.
For full information click here.