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.

Borrowers

Do I need to do anything?

If you simply want to keep your loan, you don’t need to do anything. Maintain your repayments and once the loan is paid off, there is nothing more for you to do.
The terms and conditions of your existing loan haven’t changed and you can still contact us at any time to discuss early settlement, your repayment date, change your address or notify us of a change in personal circumstances. We are still here to help.

What happens if I don’t pay?

If you miss a contractual monthly payment when due or can only make a part payment, we will contact you promptly to find out why and see if you are able to make payment. However, if you aren’t in a position to make payment, and bring the loan account up to date immediately, we will inform the Guarantor.

When might my Guarantor be asked to make a payment?

If you are unable to make full repayment or only make a part payment, your Guarantor may be called upon to cover the contractual repayment. Your Guarantor would be responsible for meeting the monthly repayment until you are 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 your Guarantor to make payment on a voluntary basis. We will only make a formal demand, which is when the Guarantor becomes 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 you the Borrower, your Guarantor or both. 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 you or your Guarantor’s 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 I top-up my Guarantor Loan?

Some of our existing Borrowers with a Guarantor Loan may wish to take out additional funds with us.
As we no longer offer Guarantor loans, the additional funds would be through our new non-guarantor unsecured loan. This means you would need to be eligible for the new product and meet our new criteria.
If successful, it means you would end up with a new unsecured loan, your Guarantor loan would be paid off and your Guarantor released from their liability. You can manage your loan online at myloan.ukcredit.co.uk or speak to our customer care team on 01603 369 250.

 

Guarantors

Do I need to do anything?

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.

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 I be asked to make a payment?

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.

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 Borrower top-up their Guarantor Loan?

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.

Can you be removed as Guarantor?

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.
You can manage the loan you’re Guarantor for online at myloan.ukcredit.co.uk or speak to our customer care team on 01603 369 250.