Non-homeowner guarantor loans in the UK – things to consider

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Guarantor loans offer credit to people who have a poor credit history, or those who have not built up a sufficient credit history to meet the requirements of mainstream lenders such as banks or building societies.

The loan requires the applicant to have a second person acting as a guarantor, who will become responsible for the loan repayments if the applicant misses a payment.

Guarantors can be anyone you know– a work colleague, family member, spouse, partner or friend.

Guarantor loans – Points to bear in mind

  1. Guarantor loans can offer credit if you’ve been rejected by traditional lenders, due to a poor credit rating, or no credit history. You may find you are able to borrow more through a guarantor loan than loans offered by other lenders.
  2. Guarantor loans typically last between one and five years, offering borrowing amounts from £1,000 to £5,000.
  3. When choosing a guarantor, consider that lenders may require guarantors to be over 21 and with a decent credit history.
  4. Guarantors typically need to be UK homeowners. However, there are some lenders in the UK who will happily accept non homeowners as guarantors.
  5. Guarantor loans are not secured loans – by agreeing to become your guarantor, that person is not securing the loan against their property.
  6. Your guarantor will be subject to credit checks similar to the loan applicant – they will need to provide their bank details, statements and proof of identification.
  7. The interest rate on the loan will be determined by the applicant’s credit eligibility, not the guarantor, and the level of interest can vary depending on which lender you apply to.
  8. Your guarantor will become liable for the loan if you miss any repayments – it is a serious financial commitment, and not one to be taken lightly. A guarantor should be aware of their potential responsibilities before they agree to fulfil the role.
  9. If you don’t make on your loan repayments, the guarantor will become responsible for monies owed – and they will also pursue you for the remainder of the loan repayments and any interest accrued. If repayments are continually missed, the lender could take both you and your guarantor to court to retrieve the outstanding payments.
  10. Missing loan repayments for a guarantor loan will have negative consequences for not only your credit rating but also the rating of your guarantor.


Guarantor loans can be a way obtaining credit if you have struggled to obtain a traditional loan from a bank – but like any loan, you need to be confident you can meet the repayments to prevent negative consequences for you and your guarantor. Ensure you and your guarantor understand the conditions of the loan when considering if a guarantor loan is right for you.