What Is a Guarantor? Key Facts Explained

What is a Guarantor? <br />In the simplest terms a guarantor is someone who backs another person’s borrowing or financial obligations. <br />Should the borrower fail to repay the debt the guarantor steps in. <br />Guarantors are often used by both mortgage and utility companies. <br /><br />What does the Guarantor Do? <br />The guarantor takes responsibility for your loan if you fail to keep up repayments. <br />So, guarantors will only act for you if they feel they can trust you. <br /><br />Who can be my Guarantor? <br />For £500 to £7500 loans: <br />UK homeowner <br />Aged 23 to 75 (at end of loan period) <br />Good to reasonable credit history <br />Have a UK bank account <br />Have an income of at least £400 per month <br />Not financially linked to the borrower <br /><br />Who can be my Guarantor? <br />For £50 to £500 loans: <br />UK tenant or homeowner <br />Aged 18 or over <br />Good to reasonable credit history <br />Have a UK bank account <br /><br />Who can be my Guarantor? <br />Anyone you feel knows you well: <br />Family <br />Friends <br />Work colleagues <br />Landlord, etc.