Guarantor Loans Customers

No. As long as the loan repayments are kept up to date, there is nothing for you to do.

The terms and conditions haven’t changed and you can still contact us at any time to discuss early settlement, change your address or notify us of a change in personal circumstances. We are still here to help.

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.

If the Borrower is unable to make full repayment, or only make a part payment, you may be called upon to cover the contractual repayment. You 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 you to make payment on a voluntary basis. We will only make a formal demand, which is when you 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.

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.

Yes but not with another Guarantor Loan from UK Credit. Should an existing Borrower with a live Guarantor Loan wish to take out additional funds with us, we may be able to offer a new unsecured loan (with no guarantor) to pay off the existing Guarantor Loan.

The Borrower would need to be eligible for the new product and meet our new criteria.
If successful, the Borrower would end up with a new unsecured loan, the existing Guarantor loan would be paid off from the proceeds and your role as Guarantor would end and you would be released from your liability.

You cannot remove yourself or withdraw from being a Guarantor on any existing Guarantor Loan. As a Guarantor you 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