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Are We Borrowing Less on Brexit Fears?

There are times of the year, and times in our lives, when we seem to tend to borrow more than usual; not in the amounts we borrow, but in the number of loans as consumers we take out.

Near Christmas is one time of year that many opt to take out a loan to help fund the Christmas holiday.

Then there is in the summer, when many families will take out a loan to complete or wholly fund a holiday.

These are times of the year that there can be a spike in the number of consumers taking out loans.

Then there are times in our lives, that we need to turn to borrowing to fund and complete them, a university degree we may take out student loans, to buy a property we may require a mortgage, and maybe a car loan to finance a car.

Even the use of credit cards as borrowing can see trends in when they are used.

So with all that influences when and how we borrow, is Brexit influencing our borrowing habits as consumers?

We know that the Brexit may or has been impacting the cost of some foods, the value of the Pound has dropped, and also that there are businesses leaving the UK due to Brexit, so they can continue to trade in the EU.

It is also feared that many businesses may not be ready for the Brexit, leaving some wondering and confused.

So it would seem to follow logic that the Brexit may also influence us as borrowers, and may influence us to borrow less.

If we are to believe the figures and statistics, then yes, we are borrowing less, and this is thought to be based on fears of the Brexit. Actually it is fear of the unknown, we don’t really know what will happen.

Deal…no deal…what happens???

All this can effect our behaviours, consciously or not, and borrowing may be one way we are affected.

A quick search shows that we are borrowing less, and that banks are “bracing” for this reduction.

Depending on where you look or whom you ask, credit cards are being used less, down at it lowest since 2014.

So what does this mean for now and the future?

One can only speculate based on historical events, and educated guesses.

If banks and lenders want to lend more money, they can simply lower interest rates, and make credit easier to access. Credit card companies can offer unsolicited credit limit increases, and banks can open the vaults as they say.

The one downside to this is the pendulum swinging the other way at some point.

If you remember there is a price to pay for easy and cheap credit, it is called a “credit crunch”.

Unfortunately there is no crystal ball to predict what may or may not occur.

There is uncertainty in immigration as to when “free movement” ends in the UK for EU nationals, uncertainty with food prices and importing items from the EU to the UK, and this list goes on and on.

Borrowing money is just another box to be ticked on the list.

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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.