Guarantor Loans

Guarantor Loans Online


489.4% APR

Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 191.2% (fixed). Total repayment amount £1726.68 and total interest is £976.68. 12 monthly payments of £143.89. My Financial Broker is a broker, not a lender*.

* As a broker, we are unable to ascertain exactly how many customers take out a loan or the lender’s rate of interest particular to that customer, therefore our calculation is based on the mean APR of our panel of lenders.


What Are Guarantor Loans?

Guarantor loans offer an effective way to borrow up to £2,000 with the help of a person you know to act as your guarantor. The guarantor agrees to pay back your loan if you cannot— so the lender has a lot of security and confidence that they will be able to recover their funds.

Apply for a guarantor loan from a direct lender with My Financial Broker. You can get an instant decision on the screen and once the details have been verified for you and your guarantor, you can typically receive funds on the same day.

Loans For Bad Credit

Guarantor loans are commonly used by people with bad credit histories or who have been turned down for regular loans. Having a guarantor who is employed, has a good credit rating, and is a homeowner will give a lot of credibility to your application.

Even if your credit is poor and you’ve struggled to manage your repayments in the past, a guarantor lender may still consider your application. Do bear in mind though that a guarantor lender will still perform a credit check on you to ensure that you meet their criteria.

How Guarantor Loans Work

Your application starts online, where you will be able to choose a loan amount and borrowing period. With My Financial Broker, you can apply for a small guarantor loan, or a much larger amount with the option to borrow it for up to 2 years (24 months).

Once you’ve chosen your loan repayment options, you will then need to fill in some basic details about yourself and your guarantor. The guarantor lender may wish to speak to you and your guarantor over the phone to ensure that you understand the terms of the loan.

You will have the option to repay your money early at any point, which can save you money because you accrue less interest overall.

Your loan agreement is co-signed completely online, so there is no paperwork to print out or send in the post. Learn more about how guarantor loans are different to payday loans here.

What Can You Use Guarantor Loans For?

Guarantor loans in the UK are mostly used for lifestyle purposes – whether it is buying a new car, paying for a wedding, starting a business or consolidating debts.

One of the best things about a guarantor loan is that if you can get into the routine of paying back your loan each month on time, this information will be sent to the credit reference agencies and your credit rating will improve as a result. This makes it a great product for people looking for guarantor loans for bad credit, as these loans can help you improve your credit score in the process.

What Information Do I Need to Provide to a Guarantor Lender?

  • Name
  • Age
  • Address
  • Monthly income
  • Monthly expenses
  • Bank details

Who Can Be a Guarantor For a Loan

Your guarantor is usually someone that you know and can speak to openly about your financial situation. Most approved guarantors are usually parents, siblings or spouses – and it needs to be someone that you will remain in contact with for the duration of the loan term, so at least a few years.

If suddenly your guarantor is called upon to repay your loan and you have not spoken to them in several years, this can be awkward and put pressure on a relationship.

To get a cheap guarantor loan, it is ideal to have a guarantor with a strong credit rating and have a homeowner status. This will give the lender confidence that their loan will be recovered and you will be able to access rates from 39.9% to 49.9% APR.

If you’re applying for a non-homeowner guarantor loan, your guarantor would be living in rented accommodation. This gives the lender a little less security, knowing that your guarantor’s residence could change under short notice – hence the interest rate you pay could be closer to 59.9% APR.

How Quick Can I Get a Guarantor Loan?

Once you’ve submitted an application, you will receive an instant decision on the screen with a provisional quote from one of our partnered guarantor lenders. Subject to further checks from you and your guarantor, your application will be processed and funded as soon as possible.

Guarantor loans are usually paid out between 24 and 48 hours, so they are reasonably quick if you are approved. The only thing that delays your loan is getting confirmation from your guarantor and giving the lender time to carry out credit and affordability checks.

These checks can sometimes be very fast, and it has been known for some guarantor loans to be funded within a few hours. Generally loans with no guarantor are paid out quicker as the lender doesn’t have to perform as many checks.

How to Apply for a Guarantor Loan

You should ensure you find a suitable friend or family member to be a guarantor before applying for a guarantor loan. Once you’ve agreed this, simply click on the apply now button below. You will be asked to fill in some information about yourself, how much you would like to borrow, and how long for.

Make sure that you always have permission from your guarantor before applying. If your guarantor is not accepted, you can always find another one within a certain time period (e.g 30 days) before having to start a new application.

Can I Apply With a Guarantor Loans Direct Lender?

Yes, we work with guarantor loans direct lenders only, so your application will be matched with a guarantor lender who can help you. The lender will carry out the checks, perhaps speak via a quick phone call, fund your loan and take repayments – all with no other middlemen involved.

Once funded, your loan will be sent to the guarantor first and there is a 2 week cooling off period where they can decide to send you the funds or send it back to the lender with no fees charged. This is a security measure for the lender – they feel more confident giving a large sum upfront to a person with a good credit history.