Guarantor Loans Customers
UK Credit stopped offering new Guarantor Loans in December 2021. We haven’t stopped trading, we have just decided to stop offering Guarantor Loans.
We understand Borrowers and Guarantors with live Guarantor loan accounts may have questions about what that means for them.
Whether you are a Borrower or a Guarantor, you should find all the information you need on this page. Should you have any further questions or would like to discuss your account with us, you can contact our customer care team on 01603 369 250.
Can I top-up my loan?
UK Credit are not able to offer top-ups on existing Guarantor loans.
You may be able to apply for an unsecured loan with our sister company, Norwich Trust.
To find out if you’re eligible for a Norwich Trust loan, visit the Norwich Trust website.
How do I make a complaint?
Details of how to make a complaint, as well as our complaints process, can be found on our complaints page.
What happens if the Borrower doesn’t pay?
If the Borrower misses a contractual monthly payment when due or can only make a part payment, we will contact them to find out why and see if they are able to make payment. However, if they aren’t in a position to make payment, and bring the loan account up to date immediately, we will contact you to let you know.
When might a Guarantor be asked to make a payment?
If the Borrower is unable to make full repayment, or only make a part payment, the guarantor may be called upon to cover the contractual repayment. They would be responsible for meeting the monthly repayment until the Borrower is able to resume payments to us, or until the loan balance is zero.
Prior to the loan being in default, which is when the arrears are the equivalent of at least two contractual payments, we will approach the guarantor to make payment on a voluntary basis. We will only make a formal demand, which is when the guarantor will become liable for payments, if the account is not brought up to date, the loan falls the equivalent of at least three contractual payments in arrears and a default notice is issued.
What happens if non-payment continues?
If we are unable to collect payments from either party, we may start court proceedings against either the Borrower, you or both of you. Any legal costs we incur will be added to the loan. These legal proceedings may result in us being given a County Court Judgment against one or both parties. This could lead to us applying for an attachment of earnings order under which the courts order that either the Borrowers or your employer makes payments to us via deductions directly from their pay.
We may also apply for a charging order being placed over the property owned by either party, though it is not at risk of repossession. A charging order means that before the property is re-mortgaged or sold our total debt would need to be repaid from the proceeds. If granted, a charging order is for the loan balance, all interest and charges added to the account plus the cost of any legal proceedings.
Can the Guarantor be removed from the loan?
No. The guarantor cannot remove themselves or withdraw from being a Guarantor on any existing Guarantor Loan. As a Guarantor they will have electronically signed a Guarantee and Indemnity Agreement, which is a legally binding contract, meaning Guarantors remain liable for the entire loan term.
Once the loan is settled (paid off) any liability as Guarantor is removed.
Get in touch
01603 369 250
8-8 MON-FRI | 9-1 SAT
48-52 Surrey Street