Been asked to be a Guarantor? Here’s what you need to know.

Guarantor loans were one of the fastest growing areas of the UK credit market during 2016. That is hardly surprising given that these loans have extended credit to hundreds of thousands of people denied lending by the major banks because of financial mistakes they have made in the past. Guarantor loans are based on the principle of security being provided by a third party – somebody who is willing to guarantee the loan payments should the borrower get into difficulty at some point during the lifetime of the loan. Anybody (well, there are a few rules) can become a guarantor for somebody else and most guarantors are family members, close friends or colleagues of those who apply for a new loan. But while you may be clear about your responsibilities when it comes to applying for a loan in your own name, you may be unsure about what is involved when you guarantee somebody else’s borrowing. While you’ll probably be keen to help somebody close to you who is unable to borrow with their
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