Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk

Tenant Guarantor Loans


I'd Like to Borrow:

6 Months


Apply Now!

Representative APR


Representative Example: On an assumed loan amount of £750 over 12 months. Rate of interest 292% (fixed). Representative 171%APR. Total repayment amount £1351.20 and total interest is £601.20. 12 monthly payment of £112.60.*

* We do not know how many customers take out a loan or the APR, this calculation is based on the mean APR of the lenders we work with

Tenant guarantor loans allow you to borrow money with a guarantor that is a tenant or lives in rented accommodation. Originally, guarantor lenders only wanted borrowers to have guarantors that were homeowners because having a stable residence and mortgage usually meant that you were more financially secure and less likely to leave your premises.

But over time, guarantor lenders have become more relaxed and are willing to offer tenant guarantor loans. After all, if you have a guarantor with a steady employment and good credit rating, they can be an excellent guarantor to have, regardless of whether they rent a property or not.

Can I Get A Guarantor Loan For Tenants?

Yes, there are various lenders that will offer guarantor loans for tenants in the UK. Your guarantor must be over 25 years old, living in the UK (not abroad), be employed and have a good credit rating to maximise your chances of approval.

My Financial Broker can help narrow down your search so you can apply directly with tenant guarantor lenders, helping you to get the loan you need.

How Much Can I Borrow?

With a tenant guarantor loan, you can usually borrow £500 to £10,000 repaid over 12 to 60 months in equal monthly instalments.

The maximum you can usually borrow with a guarantor loan is £12,000 or £15,000, depending on the lender. However, the amount you can borrow with a tenant guarantor is a little less to reflect the added risk. This is because lenders consider that a tenant could leave their premises at any point and be hard to get in touch with. So whilst you can still borrow the money you need, the maximum amount you can borrow is just slightly less.

Guarantor Loans For Non Homeowners – What Does This Mean?

Borrowers may also be looking for guarantor loans non homeowners, when finding out that a lender is looking for homeowners only.

In the early days of guarantor loans, lenders required your guarantor to be a homeowner because it is an unsecured loan and if there was a property involved, they felt it added more security.

If your guarantor had gone through the process of getting a mortgage, they would have proved their creditworthiness and be used to making monthly payments. In addition, a guarantor with a mortgage is less likely to move without notice and can always raise funds if necessary through a second charge mortgage or renting out a room.

But today, guarantor loans for tenants are available – so you do not necessarily need to worry if your guarantor is a homeowner or not.

What Does My Guarantor Need To Do?

When applying, your guarantor will be required to co-sign your online loan agreement and this confirms the terms of the loan and that they will be required to make any missed payments on your behalf.

The lender will usually have a phone call with the main borrower and the guarantor to ensure that they both understand the terms of the loan and their responsibilities.

There is also a cooling period that once the loan is funded, the guarantor will receive the full sum and have 14 days to send the money to the borrower or send it back to the lender without any fees charged. This is a security measure and gives the guarantor the freedom to change their mind if they wish.

Apply Now