Tenant Guarantor Loans
We are pleased to announce that we can now arrange a guarantor loan of up to £5000 if your guarantor is a tenant, if your guarantor is a home owner then you can apply for up to £7500, If you are a home owner then you can apply for up to £10,000. This is a major increase from the previous maximum level of £3000, and we see it as a move that shows confidence in the way the UK economy is improving. Not only that but the APR for a guarantor who is a tenant can be as low as 49.9% APR, massively reduced from the previous low of 79.9% APR we used to be able to offer.
Considering the increased risk in lending to a guarantor who is a tenant opposed to a guarantor who is a home owner, and the fact that most guarantor lenders operate around the 50% APR mark for when using a home owner, this is a market leading offer and will shake up the guarantor lending market in a big way.
It is due to lenders looking a case by its merits and not necessarily that the guarantor is a home owner. If a potential guarantor has rented their house for many years and has a good credit record, then why should they be treated any differently to a home owner? The simple answer is they shouldn’t, the tenant with the good credit history is going to care about their credit history being affected just as much as the home owner, so isn’t going to put their name forward unless they trust the applicant, which is the basic premise behind guarantor loans.
Loans are available over 5 years and a typical repayment schedule on a £4000 loan over 5 years at 59.9% APR will look something like this;
Applicant Borrows £4000 over 48 months
Approximate monthly repayment = £187.77
Interest and fees = £5012.87
Total to repay = £9012.87
But if we take that example over 3 years;
Applicant borrows £4000 over 36 months
Approximate monthly repayment = £214.26
Interest and fees = £3713.36
Total to repay = £7713.36
So if you can afford an extra £26.49 a month, you will pay off your loan 12 months earlier and save £1299.51 in interest. So taking the above into account, it’s always best to ask for a quote on different loan terms, and select the one that you can afford in the long term and try and pay it off as early as possible.
If you’re looking for a guarantor loan then apply here and let piggy take care of the rest for you.