CLOSEHOMECONTACTFAQ'SOUR LENDERS BLOGHOW IT WORKS

Month: November 2017

What is Data Protection?

Date 29 November 2017

As we are sure you are fully aware, digital technology has transformed nearly every aspect of our day-to-day life. Whether it be at home, work or even on holiday, our reliance on all things digital is evident, and most of us would be completely lost without our gadgets. This means that making sure our data is secure is a fundamental an...

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What Does The Stamp Duty Change Mean?

Date 28 November 2017

Chancellor Phillip Hammond announced in the budget last week that stamp duty will be removed with immediate effect for first-time buyers. Previously, stamp duty was paid on all residential properties above the price of £125,000. This clearly sounds a positive step in the right direction that could enable the younger generations to get their foot on the property ladder, who...

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Property Improvement Loans

Date 27 November 2017

Home improvement is one of the most popular reasons for people borrowing money, particularly now that property prices are high. This has led to a large number of homeowners looking for ways in which they can improve their current property and increase its value. This is often in order to either fetch a larger return on their property when put...

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What is Behavioural Underwriting?

Date 27 November 2017

Underwriting is the process by which lenders decide if a person is eligible for a guarantor loan, credit card or mortgage. Eligibility is measured in a number of ways, essentially in order to decipher if a person is a low-risk customer and are trustworthy enough to make repayments each month. ‘Behavioural underwriting’ focuses on the applicant’s user and demographic behaviour when making...

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Autumn Budget 2017: The Highlights

Date 24 November 2017

On the 22nd of November, 2017 the UK Chancellor of the Exchequer, Philip Hammond, delivered the Autumn Budget 2017 to Parliament. The budget outlines how the country’s money will be spent in the foreseeable future. What changes are being made, and how might they affect you? Read on to find out.   Brexit The Chancellor began by addressing the impenetrable...

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How To Get Work As A Freelancer

Date 24 November 2017

Thinking of taking the step of getting into freelance work? You aren’t the only one. According to IPSE the freelance sector in the UK has grown by more than 25% in the past decade, generating around £109 billion a year. The freelance lifestyle may have garnered a somewhat unfair reputation for being predominantly one of pyjama-wearing, being messy-haired, and often...

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What is Money Laundering?

Date 23 November 2017

The term ‘money laundering’ evokes an image of cleaning-up one’s money, which very aptly describes what money laundering is designed to do. Money laundering is the process of legitimizing money or assets obtained criminally. For example, one might convert money obtained through the selling of drugs into legal assets by putting them into the housing market, selling properties and thereby...

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
 
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”https://www.paydaybadcredit.co.uk/direct-lender/” data-mce-href=”https://www.paydaybadcredit.co.uk/direct-lender/”>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html” data-mce-href=”https://www.handbook.fca.org.uk/handbook/CONC/4/2.html”>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”https://www.gov.uk/county-court-judgments-ccj-for-debt” data-mce-href=”https://www.gov.uk/county-court-judgments-ccj-for-debt”>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.