Who can be a guarantor?

Who can act as a guarantor?

can a loan guarantor be mother father brother sister
  • Mums and Dads
  • Friends
  • Brothers and Sisters
  • Partner or Spouse
  • Children
  • Colleagues
  • Homeowners
  • Tenants

A guarantor is usually a family member or friend; these are the people who will know the borrower best. As long as our simple criteria are met, a guarantor can be anyone who's happy to make the payments if the borrower can't. Look at it as a way of financially helping someone close to you without lending them the money directly.

We understand that some people haven't had the chance to build up their credit history or have run into a little financial difficulty in the past. When acting as a guarantor, you're helping someone who is likely to have faced difficulties securing a loan on their own.

Guarantors are needed for two main reasons:
  • To provide security for the applicant in order to secure the loan
  • In the unlikely scenario that loan repayments are missed, agreeing to step in and make the payments on the borrower's behalf
Our loan guarantors need to:
  • be 21 to 70 years old at the time of loan pay out
  • have not been bankrupt in the past 6 years
  • have no Debt Management Plan or Individual Voluntary Arrangement over the past 6 years
  • be a homeowner, or an employed non-homeowner

Does a guarantor need to have a good credit history?

can a guarantor have bad credit

If your guarantor is a homeowner, they do not need to have a perfect credit history, but it must be acceptable.
If your guarantor is a tenant, renting their home, then they will need to have good credit.

Guarantors with bad credit are not a good choice to guarantee a loan.
The basis of a guarantor loan is that the guarantor is there in case things go wrong, so they must be dependable.

The borrower can have had bad credit in the past, or even no credit, but the guarantor is the basis of the loan, and as such does need to have good credit.

Partners as guarantors

We can accept a partner as a Guarantor. However, this does not mean that your guarantor loan will be a 'joint' loan. Your partner will need to prove that they can independently meet the affordability criteria, in that they can afford to cover any joint/household costs in their own right.