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What is a Guarantor Loan?

Tim Carpenter, Dedicated car finance expert
Written by Tim Carpenter
Edited on

Another finance option we have available here at CarFinance 247 is that of a guarantor loan.

We can help many people with bad or poor credit, however if we aren’t able to secure you finance on your own, you may find that a guarantor loan is more suitable.

You may have encountered difficulties in keeping up with credit instalments in the past, perhaps you have experienced bankruptcy or perhaps you are yet to build up any credit at all. At CarFinance 247, we do have lenders that can still offer loan solutions in such situations, through the provision of a guarantor loan.

This is where a friend or relative stands as your guarantor. With this kind of guarantor loan, you remain responsible for making the repayments, but if you default, your guarantor has accepted to make those payments on your behalf.

This type of finance is also an option for those with less than three years’ UK address history, subject to approval, provided also that the guarantor is a UK resident.

Your guarantor does not need to be a homeowner and doesn’t need to be employed but they will need to prove their income and, ideally, have a clean credit file.

We will consider car finance for all types of vehicles including vans, motorbikes, caravans and motorhomes (not just cars!) that are bought from any reputable dealership in the UK.

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Tim Carpenter, Dedicated car finance expert
Tim Carpenter Car Finance Expert
£
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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