Finding a guarantor tends to be the most problematic area in this sector! Most lenders ask that they must have a good credit history, have a bank account and be a UK homeowner. There are also typical age restrictions in place. The lender UK Credit has recently relaxed their demands in allowing tenants to back the application, but extra interest is added on due to the increased default risk. Whether a homeowner or a tenant stands in, much of the focus is directed at their credit score. The profile of the applicant isn’t a major issue, but they must not be currently bankrupt or be on an IVA. CCJs and defaults shouldn’t be an issue since many people will be using these loans for the purpose of debt consolidation. visit this post for additional tips.
Guarantor loans was specialized as a subprime product which will grant a competitive very low rates for people with those bad credit loan history. The said pricing is been lower compared to other alternative financial products across the market due to the “Guarantor” backing. This person (a family member or friend) stands in to back the loan application should it happen to default. If it does then they will become responsible to clear the arrears. The funds are issued to the backer as part of a security measure by the lender.
You can apply for amounts in their thousands that can be split into manageable repayment periods, typically up to 5 years. The cost of guarantor loans online are low compared to their market alternatives. If we use the example of guarantor US Loans, they charge £216.21 per £1000 over a full year. This rounds off to just 0.059% per day. Several other lenders in this sector charge amounts in close proximity to them. The most well-known lender is Amigo Loans who would charge £236.72. This company is advertised on the TV frequently and so they have become very popular despite the small time that the brand has been active. for more loan informations, visit https://uplenders.com/login/?c=15290&source=payday-lg
Broker fees are not required if you head directly to the lender, but if you do then an amount of £300 or so would have to be added to the balance. Avoiding such fees creates highly competitive rates. Just to highlight this, the top guarantor lenders are approx. 4 times cheaper than Pounds to Pocket (using the example of a £1000 sum over the year). There was a time when guarantor lenders required documentation to be sent through the post and so the time before funds could be received could take several days.
They previously operated under the name of FLM Loans, before they chose to rebrand in 2012. Their original product was launched in 2005 and so they have been around for a good while now. This industry has been progressing swiftly that has been clear from seeing many new lenders enter this niche over the past few years. Market data also shows that search engine related terms entered into Google each day have approx. doubled compared to a few years ago.
This means that same day funding can be received that is another attractive product feature. It is no surprise to see that guarantor loans instant payout are becoming increasingly popular across the UK market. There is now more supply than ever and it is a win-win situation for these lenders since they have the security measure of the backing to fall back on.