Guarantor loans » Loan

Are guarantor loans the cheapest loan option?

admin — Tue, 08 Jun 2010 10:15:25 +0000

Guarantor loans may not be the one of the cheapest ways of raising money on the high street but they do offer individuals who would have previously been turned down for finance, the opportunity of getting a loan. Because of the credit crunch, there are simply not as many lenders about offering credit to borrowers with a less than perfect credit history.

With a guarantor loan it is different. Guarantor loans means that you, the applicant are not the one who is going to be credit searched by the lender. It is in fact the Guarantor….the person (could be a friend,relative,neighbour,etc) will ‘endorse’ your application. They are usually individuals with a decent credit score, homeowners, 21 or over and it is they who will be ultimately responsible for your loan, but only if you can’t pay.

So, don’t delay any longer, get your Guarantor Loan today!

Guarantor loan UK – get a loan even with a terrible credit history

admin — Tue, 18 May 2010 11:03:25 +0000

Guarantor loans UK

Guarantor loans are loans provided to people who cannot make an application themselves because they have one of the following issues to contend with:
Tenant only (not a homeowner)
Unemployed
Student
Bad credit history
No credit history
Missed payments
arrears
CCJs

Because of these problems you can also find yourself blacklisted by lenders and other loan providers. The other problem is that you could also find yourself being ripped off by back street lenders who charge extortionate rates of interest.

To ensure lenders look at you favourably and consider your application seriously, you would need to provide a decent quality individual with a good credit history. It can be anyone at all as long as they are willing to put their name on a little bit of paper that says, “if the applicant screws up and doesn’t pay the mortgage or loan, you will be responsible. Mate”

Loans are broken down into two categories really. One is a Secured Loan and the other is an Unsecured Loan. Let’s look at the differences.

Secured Loan

A secured loan is “secured” against something. Anything of value really such as a house, car, etc. This is normally easier and less risky for a lender to lend to somebody because they can always repossess the asset in question, ie. the car or house. This is why it is harder for a tenant to borrow money because they have no asset to trade with as they rent their property.

Unsecured Loan

An unsecured loan is much harder to obtain simply because there is no asset to bargain with. If you decide not to pay then the lender will not be able to get anything back off you and their only redress is to take you to court to recover their monies. Lets face it, there’s jack all chance of that happening so a lender has to make doubly sure that when they lend to you, you WILL pay.

In summary, the only way a lender can guarantee you pay the loan back is to use the services of a Guarantor. Guarantor loans UK is the way forward.

What is a guarantor loan?

admin — Sun, 16 May 2010 09:16:04 +0000

What is a guarantor loan? is a question we often get asked.

Well, in simple terms, a guarantor loan is where the person applying for a loan cannot and will not be accepted by the lender they are applying for. Some reasons why a person will not be accepted are listed below:

A tenant who has no home to offer as security
Unemployed person with no regular income
Person on benefits
Part time worker
Bad or poor credit history
Student or mature student
Person who is too young to be considered by a bank or other lender

Applying for a guarantor loan

You can apply for a loan with anytypeofloan.co.uk here.

This list isn’t exhaustive, more of an indication of the type of person who will struggle to get a loan in their own right. However, regardless of these problems, people now have many more options open to them and a guarantor loan is just one of the most viable options open to them. The key with applying for any loan is to make sure you do your homework first as lenders and other product providers will penalise those applications that they feel have not been completed accurately. One simple rule of thumb is: if they ask you for something on the application form it is because they need it, they are not doing it for fun or to try and hack you off.

Ok, so we have discussed the fact that the application needs completing in full and in some detail as well. But who completes the application? The applicant? The guarantor? Well, the answer is both need to complete the form. Think of it this way. The applicant will be getting the cash on day 1 and the guarantor will get nothing. However, if the applicant decides not to pay or can’t pay, then the guarantor will have to cough up the cash on behalf of the applicant. It doesn’t even matter if you are no longer on speaking terms with the applicant because once you have signed on the dotted line as a guarantor, you will be liable for the applicants debt as long as it is outstanding. There is no excuse for naivety either as once you have signed, you have signed. End of.

I will post more details in a few days time on how to negotiate a guarantor loan.

Do Guarantor loans really work?

admin — Sat, 16 Jan 2010 06:15:20 +0000

Well, the answer to this in a nutshell is yes they do. It’s important that you understand the concept of a guarantor loan and also understand that if you are being the ‘guarantor’ part of the guarantor loan, that fully appreciate the role you will play in the application.

Remember
Our panel of brokers are experts in trying to find clients the right loan for their circumstances.

In essence, a guarantor loan means that the applicant is applying for a loan along with someone else who will vouch for them, in effect they are guaranteeing that the loan will be repaid even if the applicant fails to make their monthly payments. This is because the applicant has usually been refused a loan through the traditional channels such as banks and loan providers. It may be for one of the following reasons:

Bad credit history or no credit history

Claiming state benefits

Unemployed

Student

This is where a guarantor loan comes into its own. Because the lender does not assess the applicant on their own merits, the issue of bad credit or unemployment does not cause them an issue. The application is assessed on the guarantors ability to repay the loan. So if Miss A approaches a high street lender for a loan but she does not work and only receives state benefits. After getting refused she applies to a guarantor loan specialist. They also refuse but ask her to nominate a guarantor, someone like a friend, neighbour, relative that has a fairly clean credit history that will support her application.
The application will be assessed on the guarantors ability to repay the loan should Miss A default on her payments. So, Miss A gets her loan and makes the monthly repayment directly to her lender and the guarantor sits behind the loan and will guarantee to make the full payment should Miss A default on her committments. That is why a guarantor loan is the best way forward for individuals who suffer from a less than perfect credit history.

Loans no guarantor

admin — Sun, 23 Aug 2009 11:06:24 +0000

It really is quite simple to obtain a loan if you have bad credit but trying to get a loan with no guarantor is much more difficult. Loans without a guarantor means that the application will be assessed on the individual with the poor credit history, not the guarantorsupporting the application. Here at the guarantor loan specialist we understand why you would want a loan with no guarantor but it is very difficult to get one without the safety net that a guarantor brings to the table.

If you have really bad credit then lenders will struggle to accept you and the fact remains, loans with no guarantor for individuals with a problem or really poor credit history will be more difficult to obtain bu tcertainly not impossible and with our experience and knowledge, you will have a greater chance of getting the loan that you need with us.

Pension Loan

Do you have a personal pension or an ex company / frozen pension?

If so do you know that you could borrow up to 50% of what is in your pension and the best thing of all…There are NO CREDIT CHECKS AT ALL so bad credit is not a problem! If you want to find out more about a pension linked loan then just complete this form here and we will get straight back to you.

IMPORTANT
If your credit rating is ok (ie. a few missed or late payments here and there) then we can help you get a loan WITHOUT A GUARANTOR.You just need to ensure that you give us the full facts.

Unemployed loans for people who need cash fast

admin — Sat, 27 Dec 2008 18:55:50 +0000

Not only can being out of work and unemployed be a stressful time for you and your family, there is also the worry that you will not be able to afford some of lifes little luxuries, particularly at Christmas time. You know that your economic resources are going to be stretched for a period of time and that you will have to be a little more frugal in terms of your spending. However, what if a situation arises and you need access to a significant amount of cash? The only option is to borrow but even though you are unemployed, there are loans for the unemployed available.

It doesn’t really matter what the reason is, it could be for home improvements, debt consolidation such as paying off credit cards or other loans, or even to buy you a car so that you can attend job interviews whilst unemployed and looking for work.
There are other benefits available to you if you are unemployed such as unemployment benefits or disability benefits and these should not be discounted when looking for an unemployent loan.

In terms of the options available to you if you are unemployed and looking for a loan, then there are really two options, one is a secured loan and the other is an unsecured loan. Basically speaking, a secured loan will have a lower interest rate and more options for the borrower as the loan is secured against the property of the person borrowing the money. An unsecured loan usually has a higher rate of interest charges simply because it is a more risky type of loan. Either way, there is a loan available for people who are on benefits or are unemployed and the key is to look around and make sure that you find the best and most suitable unemployment loan for your needs.

Loans for people on benefits are not unheard of and in some cases, a loan for these types of circumstances are vital to ensure that the family in question can get through the period of unemployment until such time that a job becomes available. Unemployed loans for people who need money fast are available today if you look hard enough on the internet. Unemployment loans for people who need cash fast is a good start for people looking for a loan.

Fast tenant loans

admin — Thu, 20 Nov 2008 10:37:13 +0000

A tenant loan is simply a loan that is made available to a tenant in the UK that does not have any property to offer as security. In laymans terms, it simply means that the lenders do not have any comeback or property to repossess if you do not keep up your loan repayments. The example below shows you why.

Example
Mr Jones lives in a rented apartment in London. He has a job but as he moves around a lot he has decided it is simply not worth buying a place of his own, so renting is a better option. He decides he needs a loan to pay off a few debts and leave him with enough to go on holiday with, so he applies to UK Bank PLC.
UK Bank PLC offer him a loan and although the interest rate is slightly higher than he wanted, he is delighted that he is getting his money on the bank’s special tenant loan scheme.
He continues paying the loan for a few months and then to his dismay, he finds out that he is to be made redundant. Apart from the obvious concerns he has, his main one is how is he going to pay his bills?

Time goes on and he still can’t find a job. Things are tough and he is struggling to pay his bills, let alone live day to day. The landlord is threatening to kick him out so he ensures that out of all of his bills, he always pays the landlord first. He also makes sure that he pays his utility bills and of course his mobile phone bill in case someone calls him about a job.
In fact, he can make all of them apart from his tenant loan and anyway, he has had his holiday now and paid all of his credit cards off with the loan so it’s not as if he is getting any benefit from paying this loan every month. He decides to stop paying his tenant loan.

UK Bank PLC hear about this and decide to take him to court over his refusal to pay his loan. The problem is that because this is a tenant loan, they cannot take his car off him in lieu of the debt. They can’t try and repossess his house either because he doesn’t own one. The best they can hope for is that the court make him pay up in full or threaten him with a conviction.

However the court decides that his situation is unfortunate and that he simply cannot repay the total debt in one go and of course, he has no assets to help (remember, the bank cannot touch the car or the house as it was not secured against the tenant loan). The court decide that he can repay the bank at a rate of £10 per month instead of the contractual payment of £180 per month, as £10 is all he can afford in his current situation.

The example above is why lenders and loan providers charge tenants a higher rate of interest and why it is more difficult to obtain a tenant loan.

Guarantor Loans

admin — Thu, 13 Nov 2008 20:31:05 +0000

Guarantor loans are the easiest and quickest way to obtain money if you have a poor credit history, no credit history, you are a tenant with no property to offer as security, you are unemployed or you are on benefits. The beauty of this type of loan is that you really can have a pretty dismal credit history and still be accepted for a guarantor loan. CCJ’s, defaults, arrears on a mortgage , credit card, rent or any form of loan or credit will not preclude you from getting a loan with the use of a guarantor and below I will explain why.

A mortgage lender or loan provider will normally assess every client on their ability to repay a loan. They will check you out to make sure that you do NOT have the bad credit problems that I mentioned earlier and they will absolutely refuse you based on the fact that if they did lend to you, not only would they not get their money back from you in the form of monthly repayments, they wouldn’t even be able to repossess any of your assets because loans for tenants mean that there is no property or car or other asset to take back in lieu of the payment you owe them. This type of loan is known as an unsecured loan because in simple terms, it is not secured on any of your assets. In laymans terms, the lender has nothing to claim back if you default on your loan which also means from a lenders perspective, that this is a much riskier type of loan for them to offer. That is why there are not many unsecured loans approved, compared to secured loans (which is where a house is offered as security for the loan, ie. if you default on the loan, then the lender can repossess your home in lieu of the debt. Not good but this happens more and more as people suffer greater credit problems)

A guarantor loan means that someone else will be guaranteeing to the lender that the loan in question will be repaid, hence the name of the loan being a ‘guarantor loan’. I will feature more about how a guarantor loan works in the next few days, with particular focus on the person who will be acting as the guarantor.

Are loans for unemployed people ethical?

admin — Tue, 11 Nov 2008 19:35:11 +0000

Well, it depends on the circumstances (in our view) but there are very good reasons why certain people who are unemployed, need a loan.

The classic scenario is this:

Person in a full time job suddenly find themselves out of work as the company they work for is cutting back in this awful credit crunch we are experiencing. The person leaves their job and starts hunting for a new role straight away but obviously, the job situation is as dire as the financial situation. They are still looking for a job 4 weeks later, just as their notice period comes to an end (and that means it is the last salary they will receive).

Suddenly, the bills start coming in and there is no way to pay them as there is still no job on the horizon. Christmas is coming up and there is no money for the kids presents and worse still, there isn’t enough money to buy fuel for the car to attend interviews. So, the mood in this particular household is going to be dire, what with a poor Christmas and no chance of a job.

If they took out a guarantor loan then they could attend those interviews and still have enough to buy their children’s presents which although it might sound frivolous, is actually hugely important for the mood and positive feeling that this will bring.

One last point….a loan for the unemployed should only be those people who are actively looking for work, not for those who do not intend working at any point (unless there is illness stopping them, etc)

Loans with guarantor

admin — Sat, 18 Oct 2008 18:08:24 +0000

Loans with guarantor

A guarantor loan or a loan with the aid of a guarantor is really simple to explain. It’s simply a loan that is guarantee by someone with a fairly decent credit history. However, to make it simple to understand, we have produced a guide to the terms of a guarantor loan below.

Guarantee?
Anpther easy one to explain. A guarantee is a promise by the guarantor (in writing) that the applicant who is applying for credit (also known as the borrower or debtor) will adhere to all of the terms and conditions of the written contract, also known as the loan agreement. The guarantee provided by the guarantor means that if the applicant borrowing the money is not able to make any of the payments, then the guarantor will have to step in and make the payments as they are legally obliged to do so. So, the guarantor is a ‘failsafe’ for the banks to ensure they get their loan repaid.

Guarantor?
This is the person who agrees to guarantee the loan will be repaid. Basically, they will be agreeing to repay someone else’s loan and/or debts. Usually the guarantor will be of good character and have a pretty good credit history, certainly a credit profile that the baks will be happy with. The guarantor will have to understand that they will be liable for all of the applicants debt in relation to that particular loan agreement. Banks and other lending institutions will go after the debt and it will be the guarantor that they will pursue, not the applicant.

What is the reason for a guarantee?
A guaranted loan with the aid of a guarantor means that people, particularly young people who have no credit record or very little income, can obtain a loan with a reasonable APR which they previously would not have been able to apply for. As long as the guarantor understands that this is a full, legally binding contract then there should be no problems whatsoever. The applicant and the guarantor should have some form of a relationship, whether it is as friends, relatives or as work colleagues or neighbours.

Loans with guarantors: simple, transparent and easy to administer.