What is a Guarantor Loan?

Tim Carpenter
Written by Tim Carpenter

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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No impact on your credit score
Rates from 6.9% APR. Representative APR 24.9%

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5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 24.9%, an annual interest rate of 24.9% (Fixed) and a deposit of £0.00, the amount payable would be £181.16 per month, with a total cost of credit of £4,369.52 and a total amount payable of £10,862.52.

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CarFinance 247 is a trading name of CarFinance 247 Limited, a credit broker and insurance intermediary, and 247 Money Group Limited (247 Money), a lender. Both companies are part of the 247 group of companies.

CarFinance 247 is authorised and regulated by the Financial Conduct Authority under reference number: 653019. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 06035525. Data Protection Registration Number Z1897658.

247 Money is authorised and regulated by the Financial Conduct Authority. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 10989530. Data Protection Registration Number ZA456831.

All finance is subject to status and income. Written quotations on request. CarFinance 247 can introduce you to a limited number of finance providers, including 247Money, based upon your credit rating and will receive commission for such introductions.

† We do not charge a fee for arranging the finance, however some of our lenders may charge a fee. Your account manager can provide more information on this

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