Tenants can now act as guarantor
Up until recently, the only people who could act as your guarantor for the loan, was a home owner. Well now there is some good news, we can also now use tenants as a guarantor. As long as they are aged between 18 and 65 with a good credit record, they can apply to guarantee your loan. This will give many more people access to the credit they need as before it was almost impossible for them find a home owner to guarantee it for them, and with less and less people being able to afford their own homes, meaning less people available to act as guarantor then its a positive step forward in this area of lending.
There is however a catch, you can only apply for a loan from £1,000 to £5,000. This is due to the increased risk of the guarantor being a tenant and if things go wrong down the line, it would harder for the lender to recover the sum owed. Also to take this risk into account the APR can be slightly higher, in the 50% apr to 60% APR range compared to the typical 48.6% it is for home owner guarantors, so a representative APR example would be if you borrowed £2,000 over 2 years at a representative apr of 59.9% fixed, you would pay £144.82 a month. The interest payable would be £1,475.68 making the total cost of the loan £3,475.68.
So as you can see it is more expensive than a home owner guarantor but still around 20 times cheaper than a payday loan with over 2000% apr. And as always with guarantor loans the apr is fixed, so you pay the same amount each and every month and it will not change over the period of the loan as long as you keep up with your repayments. This will enable you to budget your finances effectively and help you get back on track.
So if you can find a guarantor that is a home owner then great, it will work out cheaper, but if you only know someone who is a tenant who will guarantee the loan, we can help you out and get you the credit you deserve.
Apply now for no obligation quote tailored to your circumstances.