Guarantor Loans

Compare guarantor loans with real interest rates.

Borrow a loan without any collateral. If you are struggling to get a loan due to your credit history, then you can ask a friend or someone from the family to cosign your loan application.

Ask a friend or someone from the family to cosign your loan application.

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  • Loan

    Loans from £1,000 – £35,000

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    Borrow for 1 year to 7 years

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    Improves your Credit Score

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    Use your Friends & Family as Guarantor

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    Real Interest Rate

What is a Guarantor Loan?

A guarantor loan is an unsecured personal loan where you need a trustworthy and reliable person (normally from your friends or family) to co-sign the loan application. That means the guarantor has to repay the loan if you fail to repay it over the course of time. When you borrow a guarantor loan in the UK, it also becomes the financial liability of the co-signor to repay the loan if you fail to keep up with the repayments.

If you do not have a good credit score or you do not have any credit history yet, then a guarantor loan can help you build it from scratch. The rates of interest depend upon various factors and will vary from lender to lender. Ensure to make all the repayments on time and in full to boost or build your credit score. The person you want to nominate as your guarantor must have a good credit score and a stable source of income with an active and valid bank account.

Reasons to Borrow a Guarantor Loan


You can use the money for the down payment of your new car. Or you can also use it to repair your current one.


Merge all your debts into one. That means rather than repaying multiple debts, repay one against them all.


Give your home the love it deserves. Make necessary changes and improvements to increase the overall value of the property.


Having a guarantor for the loan provides a sense of security to the lender despite your score. The chance of approval of your application is higher.

Things to Consider Before Borrowing a Guarantor Loan

  • Guarantor loans generally have a higher rate of interest than standard loans. This is due to the borrower’s poor credit or lack of credit score. The lender increases the interest rate due to the level of risk they are taking on.
  • These are unsecured, meaning you do not need to own a property or car to be accepted. This means your personal assets are not at risk when taking out a guarantor loan in the UK.
  • The guarantor needs to be aged between 21 & 75, have a good credit rating and a regular income for the application to be approved. They will need to show proof of income and proof of ID as that will establish whether they can repay the debt if you fail to do so.
  • Guarantor loans are perfect for those who believe they will be refused a loan on the basis of their own credit history. Lenders are guaranteed that the repayments will be paid by the guarantor if the original borrower fails to do so.

Alternatives to Guarantor Loans

If you are not finding someone who is agreeing to become a guarantor for you, then you must take into consideration the other available alternatives. Mostly, people do not want to take on additional financial responsibility and that may be a reason your friends or family will turn down your request to cosign your loan application.
  • Loan

    If you have a credit card, you can use it to cover your expenses. Before using it, contact the credit card company and know about their charges in details. You can also opt for an interest-free credit card. With such cards, you will get a few months to repay your debt and no charges will be levied on it. Post that period, the charges are levied.

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    You can apply for an unsecured personal loan even if you have a bad credit score. The rate of interest that you will be offered may be high due to the score, but there are chances of approval of your loan application. In that case, you do not have to offer your property or asset as collateral. So, there is no risk to your property. However, if you do not make the repayments, your credit score will be damaged.

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    Ask your employer for a payday advance. If you share a good relationship with your manager, you can ask them to arrange for an advance payment. Talk and discuss how you have planned to repay the loan that you will be taking up. Most companies deduct a certain amount from your salary every month until the loan amount completion period.

Why Should You Apply With Us?

Real Interest Rates

Unlike other loan comparison websites, we offer you a platform to compare the rates of personal loans on real time. That means you can now compare the loans on real interest rates rather than on proposed rates

Instant Decision

You do not have to wait for hours or days at end to know the decision of our lenders. It will hardly take a minute or two and you will receive detailed information like the lenders who have accepted your application and who have declined it.

Customer Ratings

We love our customers and so do they. A lot of our customers have appreciated our service that is simple, fast, and transparent. We believe in making the entire process less time consuming, straightforward and easy for a seamless borrowing experience.

FAQs on Guarantor Loans

We have answered almost every question related to guarantor loan that are frequently asked. If you do not find something, please contact us.

Your guarantor needs to be aged between 21 and 75, have a good credit rating and have a regular income. In addition to this, if your guarantor is a homeowner, it’ll add credibility to your application. They need to be someone who is close to you, like a close friend or family member. You need to trust that they will help you repay the loan if for any reason you cannot.

Guarantor loans are given to those who cannot take out a personal loan due to their poor credit rating. This means that the lender is taking on an increased risk. The lender increases the interest rate due to this risk.

The lender will carry out a search and list you as a guarantor, not a borrower. However, in the short term, becoming a guarantor may affect your credit score as the search will remain on your credit report for 12 months. As always, making regular monthly repayments will always improve your credit rating.

If you are the guarantor and the borrower does not pay back their debt, the lender would contact you. As a guarantor, you are then expected to cover the monthly payments for them if they cannot.

While it is not expected for you to help repay the debt (provided the borrower makes the monthly repayments), you are free to assist them with the repayments if you wish to do so.

Yes, you are required to provide a guarantor for this type of loan. LoanTube does not source the guarantor for you.

This can vary from lender to lender. However, your guarantor does not need to own a property in all instances. If, for example, your guarantor has a strong credit rating and a good income they may not need to own a property. This is also dependent on the loan amount.

LoanTube works with lenders and helps match them up with their perfect borrower. Some of these lenders might not consider you, while others might think you are the ideal customer. It is our job to pair you with the right lenders based on the information you give us.

No. LoanTube doesn’t lend you the money- we’re a credit broker, not a lender. As a credit broker, we act as a bridge between lenders and borrowers. We connect you with the lenders (all licensed by the Financial Conduct Authority) who will consider your loan application. Applying through LoanTube means you don’t have to submit dozens of applications individually to each lender to get your loan decision.

You can start here at LoanTube. You can begin your application for the long term by inputting a few details into our loan application form. This includes how much you want to borrow, how long for, and what the loan is for. We then search through our partners and try to match you with the perfect

No. You’re never under any obligation to accept an offer that you receive from LoanTube. Even if we say “yes” then you turn around and tell us “no”, there’s no charge for our service.

Representative APR Example

The rate you are offered will depend on your individual circumstances.

Representative APR Example: On an assumed loan amount of £2,600.00 over 36 months. Rate of interest 41% per annum (fixed). Representative 49.7% APR. Total amount payable £4,557.89 of which £1,957.89 is interest. 35 monthly repayments of £126.61 and a final payment of £126.54