Buddy Loans are a leading guarantor lender based in Cheadle, Stockport. Loans are available for both tenant and homeowner guarantors, ranging from £1,000 to £10,000 at Representative APR of 49.9%.

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Minimum Age


Debit Card


Credit Checks


Other Requirements

Tenant and Homeowner Guarantors Accepted

Same Day Transfer Available


Loan Value Available

£1,000 to £7,500

Representative APR


Loan Length

1-5 Years

Credit License Number


  • Direct
  • guarantor
  • credit
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About Buddy Loans

Founded in 2013, Buddy Loans is an innovative guarantor lender in the UK. In Q4 of 2017, the company was granted its full permission by the Financial Conduct Authority and it received an additional investment of £10 million in order to maximise its lending capability.

Buddy are very professional when it comes to customer services and they have a real skill in understanding the customer and helping they obtain the finance they need. Their website explains that their guarantor loans are used for things like cars, weddings, debt consolidation, home improvements, educational fees and more.

The co-founder, and managing director of Buddy Loans, Nicholas Zapolski said:

 “Our ambition when we set-up Buddy Loans was to plug the gap that mainstream lenders have failed to fill, by offering a large selection of the population, especially those who may have been rejected for a loan in the past, or have bad credit, access to the finance they need to live their everyday lives.”

The Representative APR is 49.9% APR (variable) so if you borrow £2,500 over 24 months at a rate of 41.16% p.a (fixed) you will repay £154.54 per month & £3,750.17 in total.

Buddy Loan’s Key Selling Points

Direct Lender: The company prides itself on being a direct lender meaning that they handle everything from start to finish including application, underwriting, funding and collections. You do not have to worry about going through any brokers or your details being accessed by several companies and then your inbox being bombarded by loan offers. We are pleased to offer a transparent process when you can apply directly by clicking on apply now. You will be taken through to their website where you can fill in a few details and get the application process started.

No Upfront Fees: There are fees charged by Buddy for applying or for being funded. The first time you will have to make a repayment will be at the end of the first month since your guarantor is repaid in equal monthly instalments over 1 to 5 years.

There are no guarantor lenders which charge upfront fees anyway, but it is always good to know for piece of mind. There are other financial products out there which do require upfront fees, especially if you go through a broken, notably secured loans, bridging finance and mortgages.

Bad Credit Considered: As a borrower looking for finance, you may feel distraught after being turned down by mainstream lenders and banks. Fortunately, with guarantor loans like Buddy, your personal credit score is not hugely relevant in the approval process.

Sure, if you have been bankrupt several times, this could hinder your chances of approval. But having average or adverse credit histories is OK and Buddy will still consider you if you have had CCJs or defaults in the past. Instead, they look at current income and employment status, and above all, the quality of your guarantor. By having someone with a good credit history, you are able to leverage their trust and strong financial history to help get the funds you need.


Same Day Payouts: If you need the funds quickly to pay for your debt consolidation or tuition, Buddy are able to transfer funds within a few hours. You will need to have your information ready as occasionally you are require to provide pay-slips and bank statements as proof of income and employment.

In addition, the funds are transferred first to your guarantor’s bank account as a security check. This allows the lender to have added security knowing that the funds are sent first to someone with a good credit history and will not jeopardise their score by running off with the monies. It is then the role of the guarantor to pass the money over to the beneficiary in one lump sum or instalments – or they have a two week ‘cooling period’ where we they decide to return the money to Buddy with no fees charged.

Rebuild Your Credit History: One of the main benefits of a guarantor loan is that it allows those with adverse credit to rebuild their credit scores. Maybe you have been unlucky or fallen on hard times, but still want to be able to demonstrate your creditworthiness. By making regular monthly repayments on your guarantor loan product, the information is sent automatically to the three main credit reference agencies in the UK: Experian, Equifax and CallCredit. By making regular repayments over several years, this builds up and gradually increase your credit score. For more information, see how guarantor loans can improve your credit rating.

No Early Settlement Fees: Taking out a loan for 5 years is a long period of time and your financial circumstances can certainly change during this time. If you find that you are in a position to repay early, you can do so with Buddy Loans and there are no penalties for early exit, commonly associated with secured loans mortgages. In fact, you may pay less overall since the daily interest does not build up – allowing you to make a saving overall.

Choosing Your Guarantor With Buddy Loans


Buddy explain that your ideal guarantor is a family member, friend or work colleague. You need someone dependable and responsible from day one who can be involved in answering questions from the lender, providing information and signing the loan agreement, to eventually being able to step in and make repayments if need be.

Common guarantors include parents, siblings and spouses because these are people that you will still likely be in touch with in 3-5 years, unlike work colleagues that come and go. Spouses and partners are acceptable, provided that you are not receiving the funds in a joint account.

A key thing about Buddy is that they offer loans to both tenant and homeowner guarantors. This is an important feature of their product since there are several lenders like TFS Loans who only fund to homeowner guarantors, making them unaccessible for many.

The idea is that homeowners make better guarantors because it is assumed that have better employment and credit history to have been approved for a mortgage and they are used to making regular repayments. However, homeowners can also be in debt, depending on the circumstances and you can certainly find a good tenant with a good credit history and employment to be your guarantor, it just so happens that they are currently renting or living with family.

Information About Buddy Loans

FCA reference number: 718849

Registered company number: 08089541

Registered with the Information Commissioner’s Office: Z3239423

Registered Address: Alexandra Court, Carrs Road, Cheadle, Cheshire, SK8 2JY

T: 0161 850 4141