Guarantor Loans, what are the guarantor requirements?

Guarantor loans are unsecured loans and this differs from secured loans because it means you do not need to secure your loan against a possession. Naturally many non guarantor loans are sold by lenders for those people who have no guarantor but these tend to be more expensive than for those people who do have a guarantor and therefore can take out a guarantor loan. Because they are a relative new-comer to the bad credit marketplace very few people understand what the guarantor requirements are.

What are the guarantor requirements?

These change depending on which lender you go to but the following are generally the common requirements. Make sure you find out what they are for a specific lender.

The guarantor requirements and criteria

Guarantor is a UK Homeowner

One of the most important and most basic requirements is that the guarantor must be a UK homeowner. If your guarantor does not appear as having a mortgage or on the land registry search then they will likely have to provide evidence that they own a property in the UK. This is a requirement because while a guarantor loan is an unsecured loan the guarantor is basically the security and their home is their security.

Guarantor must be between 23 and 70 years old

As with anything in life that involves money the risks of death have to be considered and for that reason a Guarantor must be between 23 and 70 years old.

Guarantor must have a good credit history

As mentioned previously your guarantor is effectively the lenders security against the loan and therefore it is in their best interest to ensure the guarantor is credit worthy and has a good credit history.

Guarantor must Earn at least £800 per month from a job, pension or benefits

This is an interesting one because it doesn't matter how they earn the £800 be they unemployed, on a pension, or benefits or have a job. So long as they are capable of paying the loan back should you fail to do so that is all that matters. Of course they should be equally aware that should their circumstances change and they are liable then they could find themselves in trouble.

My Guarantor does not meet the Requirements?

Because of the way the data protection act works you will not find out why a guarantor has been rejected, it is one of the most common calls guarantor loans lenders get. The obvious course of action is to get out there and contact friends and familly looking for another guarantor but often this simply isn't possible. There is good news, there are other non guarantor loans out there and quite often a good reputable loanfinder is the answer but make sure you pay no upfront fee when doing so.

Who will find me a loan and charge me no upfront fee?

You can try the best no loan no fee bad credit no upfront fee charging loanfinder in the UK. It's no trouble to try them as they are 100% free to see. Find out what loans they recommend to you right now for free: FIND ME A LOAN!