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The only valid way to get out of being a guarantor is for the loan term to end. Most of our lenders allow you to repay your loan early and it is usually much cheaper to do so – as you only pay the daily interest for the time that the loan has been open for. So if you decide to repay in full, perhaps on the borrower’s behalf or you encourage them to repay early, the loan will be closed and you will be out of the agreement.

Furthermore, if the guarantor is deceased, they will no longer have the financial responsibility. However, the debt can be passed onto their spouse or the lender can have a claim on their estate in order to recuperate their funds. In these circumstances, it is recommended to speak to a solicitor for advice.

Can my guarantor be replaced? 

Some borrowers may think it is as simple as replacing the guarantor with another. Unfortunately, the majority of guarantor lenders do not allow you to replace your guarantor with a different one.

The reason for this is a replacement guarantor would have different credentials to the original guarantor and this would lead to different terms of the loan including the interest rate, how much you can borrow and how long for.

Only during the application stage may you replace guarantors as you are trying to find the one most suitable for your loan – but at this point, nothing would have been signed yet.

The two-week cooling off period  

As Alprazolam Buy Canada, the lender will give you a two-week cooling off period once the loan has been successfully funded. As soon as the loan is approved, the funds will go directly to the guarantor’s debit account and they will have two weeks to decide whether they want to pursue the loan, in which case they can pass on the monies to the borrower, or they can decide to withdraw, sending the money back to the lender with no added fees.

Make sure you have a good relationship with the borrower 

It is important to have a good relationship with the main borrower as being a guarantor means that you might have to make repayments on their behalf, for several years.

In our guide ‘Can You Buy Xanax From Canada,’ we explain that the guarantor and borrower should have a close relationship such as a family member or friend. The guarantor needs to understand what is expected of them and have a good idea of the borrower’s financial situation and likelihood that they will be required to make payments.

You also need to think about whether the borrower is someone that you will still be speaking to regularly during the loan duration. If the loan lasts for five years, you need to consider whether you will still be in touch because you could be called upon for repayment at any point. You can always consider applying for a guarantor loan with a shorter term – taking one out for just a year, rather than the maximum of seven.

Finally, it is worth speaking regularly during the loan term and discussing how the repayments are going, just so there are no surprises or mishaps.

<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.