Who can be a Guarantor?
A Guarantor should be someone who knows the Borrower well, usually a friend or family member. They must meet some initial criteria and be willing and able to make repayments if the Borrower doesn’t.
Guarantors are needed for two main reasons:
- To provide support for the Borrower in order to obtain the loan, which might otherwise be unavailable.
- To step in and make the repayments on the Borrower’s behalf, if the Borrower does not pay.
To act as a Guarantor, you must:
- be a homeowner – either via mortgage or outright and live in the home you own
- have been a UK resident for at least three years and have a current, active bank account
- live in England, Scotland or Wales
- be between the ages of 25 at the start of the loan and 70 at the end of the loan term
- be employed, retired or in receipt of certain benefits
- have known the Borrower for at least 12 months and trust them
- not currently be bankrupt, or had an active bankruptcy within the last 3 years
- not currently be in a Debt Management Plan (DMP), or had an active DMP within the last year
- not currently be in an Individual Voluntary Agreement (IVA) or have had an active IVA within the last year
- not currently be subject to a Trust Deed (Scotland) or have had an active Trust Deed within the last year
- be able to afford the repayments, and be willing to make them, if required
Who can be a Guarantor?
- Parents
- Friends
- Siblings
- Partner or Spouse
- Children
- Colleagues
- Other family members