There is a constant demand for hon homeowner guarantor loans. Sometimes it is difficult to find a guarantor who is a homeowner, but often more straight forward to find a guarantor who doesn't own their home (i.e. a tenant or someone living with friends or with their family).
It has always been the case that lower value (up to £500) non homeowner guarantor loans have been available - and you have access to them via our enquiry form. Now we are seeing the significant moves from lenders to stretch non homeowner guarantor loans into the larger loan value market - i.e. up to £7500 or so.
If you are a lender who relies on the presence of a guarantor to guarantee the loan repayments should the borrower fail to then you need to have confidence you can contact the guarantor and that they have the abilty to pay the missed payments. The reality is simply that homeowners don't move house as often as non homeowner and tend to have a better credit history. It's not about the home itself, and of course as it is an unsecured loan the guarantor's home is never used as security. The lender simply wants to minimise the risk of debts going bad.
However, lenders are now developing new ways to assess risk and to give them the confidence they need. Lender now have access to numerous sources of data that allow them to assess a guarantor's credit rating and to confirm their identity. The notion that the guarantor needs to be a homeowner is becoming old-fashioned as the home itself is no longer relevant in assessing the financial strength of the guarantor.
We expect these types of loans to become very widely available, but it is worth keeping in mind that a guarantor, whether or not a homeowner, still needs to have a very good credit history. If this type of loan interests you then you should submit an enquiry. We'll be able to tell you which lenders are prepared to lend in principle and these may include lenders who are willing to consider non homeowner guarantors.
Currently lenders who accept non-homeowners as guarantors are charging slightly more for their loans, but the gap is narrowing and we expect over time that the gap will disappear completely - i.e. non-homeowner guarantors will be considered to be the same risk as homeowners, which seems sensible enough.
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Solution Loans is a trading style of Affiniti Digital Media Ltd. Registered Office: Moorgate House, 7 Station Road West, Oxted, Surrey, RH8 9EE. Registered in England & Wales, number 5180470. Solution Loans is authorised and regulated by the Financial Conduct Authority. Interim Permission Reference Number 558724. Registered with the Information Commissioner's Office - Z8703415. Solution Loans acts as an introducer to guarantor loans lenders.