Guarantor loans are unique in that they use a ‘guarantor’ – who is usually a friend or family member of the person who wants to borrow the money – as a type of security on the loan. They are technically unsecured loans. Other unsecured loans rely solely on the borrower’s credit history in order to work out whether the money should be lent out, but guarantor loans look at the borrower’s and the guarantor’s credit history to assess the risk, so you may be more likely to be approved for guarantor loans. The borrower and the guarantor both have to give the loan company some details and speak to someone on the phone in order to set up the loan. This helps to ensure that no one is ever named as a guarantor without them knowing. When the money is paid out, the borrower must then make monthly loan repayments for the full term of the loan. If they don’t, then the guarantor is asked to step in and make the payments on the borrower’s behalf. As long as the borrower pays the full instalment every month then the guarantor does not have to do anything.

With LoansHouse, you can borrow from £2,000 to £12,500 over 1 to 5 years. This means that you can tailor the loan amount and loan term in order to suit your needs. For example, you may want to borrow £3,000, but how much you pay back each month will depend on the loan term you choose. If you want to get the repayments out of the way within a year, then you’ll make 12 monthly payments of £309.19. For those who want to keep the repayment amount down and don’t mind paying it off over a longer period of time, then you can opt for longer. For example, borrowing £3,000 over 3 years will mean you have to make a monthly repayment of £146.39. Paying this same amount back over 5 years would mean monthly payments of £118.59. You can use the handy sliders on our website to play around with amounts and loan terms before you apply in order to see what combination would be best for you and to see how much you could borrow, subject to our affordability checks.

The application can take just 5 minutes. Once we are happy that your application is complete we may be able to get the money to you on the same day.

Your guarantor should be chosen carefully, as they must fit the following criteria – have a good credit history and have enough income each month to cover the loan repayments just in case they are asked to step in. They must also have an active UK bank account and be at least 21 years old. Many people choose a close friend or family member (such as a parent or sibling) to act as a guarantor on their guarantor loans. As long as they fit the criteria above, have passed all security checks and have the means to pay the loan then they can be your guarantor. If you have any additional questions about what it means to be a guarantor or about any aspect of the guarantor loans, please contact us on 01603 391013.

We believe that you deserve a reward if you keep up a good repayment record, so if you pay the first 12 month’s payments in full and on time we’ll give back one month’s full payment! The money will go into your guarantor’s account, just like the original guarantor loan. No other company offers a reward like this – but then again, we’re the first to offer this sort of flexible personal service, too.

Welcome to LoansHouse – we are a Peer to Peer lending platform, specialising in offering credit to those with a less-than-perfect credit history. We are able to offer guarantor loans from £2,000 to £12,500, payable over a 1 – 5 year period. Payments can be made on a monthly or weekly basis, on a date we will agree on with you. This ensures the loan is manageable as it breaks it up into regular, affordable payments. What’s more, making regular payments like this on guarantor loans will also help to give your credit file a bit of a boost, as it shows you’re able to manage credit properly.