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Tenant Guarantor Loans

your ultimate one-stop-shop for tenant guarantor in UK

Affordable loans for homeowners and tenants.
Compare tenant guarantor loans with LoanTube.

LoanTube is a credit broker not a lender. You must be 18 or over and a UK resident.
LoanTube is a credit broker not a lender. You must be 18 or over and a UK resident.

Your loan requirements

Comparing won’t affect your credit score.

LoanTube is a credit broker not a lender. You must be 18 or over and a UK resident. Representative 79.5% APR

Loans up to £35,000

Borrow for 12-84 months

Collateral-free guarantor loans

Accessible loans for homeowners and non-homeowners

Tenant Guarantor Loans

Tenant guarantor loans are a type of financial product designed to help tenants with limited or poor credit histories get loans by having a guarantor co-sign the loan agreement. A guarantor usually has a stable financial background and agrees to repay the loan if the tenant (the borrower) defaults. These loans are mainly aimed at individuals renting a property. Being a tenant and having no property of your own makes it difficult to qualify for traditional loans due to the lack of collateral or creditworthiness.

How do Tenant Guarantor Loans Work?
  • Application: The tenant applies for the loan, providing their personal and financial information and details about their guarantor.
  • Guarantor Requirements: The guarantor typically needs to have a good credit history, a stable income and may need to own a property. They provide a safety net for the lender if the borrower cannot repay.
  • Credit Checks: While the borrower’s credit history may still be considered, the guarantor’s creditworthiness plays a significant role in the approval process.
  • Loan Terms: The loan amount, interest rate, and repayment terms are determined based on the lender’s assessment of the borrower’s and guarantor’s financial circumstances.
  • Responsibilities: If the borrower fails to make loan payments, the lender can turn to the guarantor to cover the outstanding balance. The guarantor is legally obligated to repay the loan if the borrower defaults.
  • Impact on Credit: Both the borrower’s and the guarantor’s credit scores can be affected if there are missed payments or defaults.
Benefits and Drawbacks of Tenant Guarantor Loans

There are various benefits of borrowing a tenant loan with a guarantor. However, you must also know the drawbacks before you borrow this loan. 

Benefits of Borrowing a Loan as a Tenant with a Guarantor 

  • Access to Credit: Individuals with limited credit history or poor credit scores can access loans they might not qualify for otherwise. If you have a poor credit history, you need to have collateral to offer; otherwise, the lenders may turn down your loan application. 
  • Higher Approval Rates: The presence of a guarantor reduces the lender’s risk, leading to higher chances of loan approval.
  • Improved Credit: Responsible repayment can help borrowers and guarantors build or improve their credit history. Ensure you make all the repayments on time to build a stellar credit score. 

Drawbacks of Tenant Guarantor Loan 

Now that you know the benefits, you must know the disadvantages of this loan to make an informed decision. 

  • Risk to Guarantor: The guarantor is taking on significant financial responsibility and could face legal action if they fail to repay the loan. If they fail to repay the loan, their credit history will also be tossed. 
  • Interest Rates: Interest rates on tenant guarantor loans can be higher than traditional loans due to the perceived higher risk.
  • Strained Relationships: If the borrower defaults and the guarantor has to step in, it could strain their relationship.
Eligibility Criteria for Tenant Guarantor Loans

The eligibility criteria for a tenant loan with a guarantor will vary from lender to lender. Different lenders have different levels of risk appetite, and hence, their lending criteria may also differ. 


Below, we have listed a few common factors with almost every lender. However, it is always better to check for the eligibility criteria of the lender you are applying to. 


  • Age: Borrower and guarantor must be at least 18 years old.
  • Residency: Both must be UK residents.
  • Income: Both need a stable income to afford repayments.
  • Credit History: A good credit score for borrower and guarantor.
  • Guarantor Status: A guarantor usually needs good credit, homeowner status, and financial stability.
  • Identification: Valid ID for both parties.
  • Proof of Residence: Address verification for both.
  • Affordability: The lender assesses the ability to repay based on income and expenses.
  • Employment: Employment details to check repayment ability.
  • Legal Capacity: Both parties must have the legal capacity to enter into a contract.
Tenant Guarantor Requirements

To borrow a loan being a tenant with a co-signor, you need to find a suitable person who will agree to act as a guarantor for your loan. To find the right person, you must learn a few things about the type of person who can be a co-signor. 

Let us understand more about it in detail. 

Who can be a Suitable Guarantor for a Tenant Loan? 

Lenders may have their criteria for approving the guarantor you are providing. However, a suitable guarantor is typically someone who:

  • Is a homeowner in the UK.
  • Has a good credit history.
  • Has a stable and sufficient income to cover the loan if the tenant defaults.
  • Is willing to take on the responsibility of guaranteeing the loan.

Responsibilities and Obligations of a Tenant Guarantor Loan 

Although you will borrow a loan with a co-signor, you have some responsibilities as a borrower. So, what is your responsibility as the primary borrower of this loan?

Your responsibilities of being a borrower are: 

  • Repaying the loan on time and as agreed with the lender.
  • Ensuring you understand and agree to the loan terms proposed by the lender. 
  • Complying with legal obligations specified in the loan agreement.

Considerations for Choosing a Reliable Guarantor for a Tenant Loan 

Consider a few factors when choosing someone to co-sign your tenant loan application. 

When choosing a guarantor:

  • Find someone with a solid financial standing and credit history.
  • Ensure they fully understand the commitment and risks involved in the loan. 
  • Opt for a guarantor who is reliable and willing to fulfil their obligations.

Assessing the Financial Capability of a Guarantor to Borrow a Tenant Loan 

A guarantor should have a stable and reliable financial backbone so that in case, as a tenant, you fail to repay the loan; they will step and repay the balance. 

But how do you assess the financial capabilities of your co-signor? Here are a few tips to help you get started with it.

Assess a potential guarantor’s financial capability by:

  • Reviewing their income and employment stability.
  • Evaluating their existing financial commitments.
  • Ensuring they have disposable income to cover the loan if needed.
  • Confirming their willingness to undergo a credit check.
Tenant Guarantor Loan Amount and Repayment Terms

While filling up the application form for a tenant loan with a guarantor, you will need to quote the loan amount you aim to borrow. Along with it, you will also have to choose your repayment horizon. 

Let us delve deeper to understand how it works. 

Determining the Loan Amount you can Borrow 

It is one of the most critical factors influencing the lender’s decision about your loan application. 

The loan amount you can borrow through a tenant loan with a guarantor in the UK depends on factors such as:

  • Your income and affordability
  • The lender’s policies and assessment criteria
  • Your credit history and financial stability
  • The guarantor’s financial capability
  • The value of the collateral offered by the guarantor 

Repayment Period and Options Available with a Tenant Guarantor Loan 

Decide the repayment period as per the amount you are borrowing. Different lenders will have various options for repayment. 

The repayment period and options can vary:

  • Repayment periods often range from several months to a few years.
  • Some lenders offer flexible repayment terms, while others have fixed schedules.
  • Choose a repayment plan that aligns with your financial situation.

Check the monthly instalment amount you must pay each month and choose a repayment period per your financial circumstances. 

Interest Rates and APR for Tenant Guarantor Loans 

The interest rate and APR for tenant loans with a guarantor is decided based on various factors. It is not fixed, so it cannot be said how much interest rate the lender may charge you for the loan you are borrowing. 

Interest rates and Annual Percentage Rates (APR) for tenant guarantor loans can be influenced by:

  • The borrower’s and guarantor’s credit history.
  • Market conditions and lender policies.
  • The loan amount and the repayment period.
  • Value of the collateral. 

Impact of Loan Amount and Repayment Terms on Affordability 

The amount you borrow and the repayment period you choose will impact your affordability. Further, it may lead to a disturbed financial budget if the loan is managed responsibly. 

The loan amount and repayment terms impact affordability:

  • Higher loan amounts lead to higher monthly payments.
  • More extended repayment periods can lower monthly payments but increase overall interest costs.
  • Carefully balance loan amount and repayment period to ensure manageable payments.
Tenant Guarantor Loan Application Process

We have compiled everything you must know before applying for a tenant loan with a guarantor to make the process easy and seamless. Right from understanding the list of documents you need to the credit checks your profile will go through – here is everything you need to know before applying. 

Let’s start with the documents. 

Necessary Documents for Tenant Guarantor Loan Application 

Lenders and financial institutions may have different internal loan approval process requirements. Hence, the documents you will be asked to submit may vary from one lender to the other. 

However, generally, you may be asked to submit the following documents for a tenant guarantor loan application:

  • Proof of identification (ID, passport)
  • Proof of residence (utility bills, bank statements)
  • Proof of income for both tenant and guarantor
  • Employment details for both parties
  • Information on the guarantor’s property ownership

Applying for a Tenant Loan with a Guarantor in the UK 

You can easily apply for a loan as a tenant with LoanTube. We have partnered with different reputed lenders in the UK who are authorised by the Financial Conduct Authority (FCA). 

Here’s how you can apply with us:

  • Determine the amount you need to borrow 
  • Fill up the application form with your personal and financial details
  • Submit the application

Once you apply, it will be assessed by our pool of lenders. Within a few minutes, you will get the list of lenders willing to offer you the loan with the interest rates and APRs. 

You can easily compare the quotes you received from the lenders and choose the one that seems suitable to your circumstances. 

Roles and Responsibilities of the Tenant and Guarantor during the Loan Application Process 

Taking a loan brings many financial responsibilities that must be taken care of. Whether you are the borrower or the guarantor of the loan – you must be aware of your roles and responsibilities to avoid any financial troubles in the future. 

We have broken down the roles and responsibilities of the tenant and the guarantor separately to help you understand it clearly. 

Roles and Responsibilities of a Tenant 

  • Application: The tenant is the primary borrower and initiates the loan application process.
  • Documentation: Provide accurate personal and financial information, including proof of identity, residence, income, and employment details.
  • Loan Agreement: Understand and agree to the loan terms, including repayment schedule, interest rates, and associated fees.
  • Repayments: Make timely and consistent loan repayments as per the agreed-upon terms.
  • Communication: Maintain open communication with the lender and the guarantor throughout the loan term. Raise a flag to them in case you have any issues regarding the loan or its repayment. 
  • Financial Management: Manage personal finances responsibly to ensure affordability of loan repayments.
  • Default Risk: Recognise that failure to repay the loan could impact both the guarantor’s credit score and your own.

Roles and Responsibilities of a Guarantor 

  • Support: The guarantor provides a financial guarantee for the loan and commits to covering the loan if the tenant defaults.
  • Documentation: Provide personal and financial information, proof of identity, residence, and ownership details (if applicable).
  • Credit Check: Consent to a credit check, as the guarantor’s credit history, plays a role in the loan approval process.
  • Loan Awareness: Understand the loan terms, the potential obligation to repay, and the risks of becoming a guarantor.
  • Financial Capacity: Assess your financial stability and ability to cover the loan if the tenant defaults.
  • Legal Commitment: Acknowledge that becoming a guarantor with potential financial consequences is legally binding.
  • Communication: Maintain communication with the tenant and lender to stay informed about the loan status.

Credit Checks and Affordability Assessments 

When you apply for a loan, the lender will assess your credit profile to determine your creditworthiness. The lender must evaluate your credit history to decide the loan terms, interest rates and APR. Your credit score reflects your financial behaviour; hence, this is the first thing the lender will do once they receive your loan application. 

Let us understand more about it in detail. 

  • Tenant and Guarantor: Lenders conduct credit checks on the tenant and the guarantor. This assessment of their credit histories helps determine their financial reliability.
  • Credit History: Lenders review credit scores, payment histories, outstanding debts, and previous defaults or bankruptcies.
  • Risk Assessment: Credit checks help lenders evaluate the risk associated with lending and set interest rates accordingly.
  • Impact on Credit: Credit checks can minorly impact credit scores, but responsible lending behaviour can help improve credit over time.

If you are unsure about borrowing a loan from a lender and want to get a quote from them, check if they conduct a soft credit check.

Lenders associated with LoanTube conduct a soft credit check to offer you loan quotes. A soft credit check doesn’t leave a footprint on your report and doesn’t reduce any points from your credit score. 

Tenant Guarantor Loan Providers

Several lenders and financial institutions offer tenant loans with guarantors in the UK. You should borrow the loan from a lender whose terms and conditions align with your financial horizon. 

Banks and Financial Institutions Offering Tenant Guarantor Loans 

Several banks and financial institutions in the UK offer tenant guarantor loans. Checking with local branches or their websites for specific loan offerings is recommended. You may directly contact them for your queries. 

Online Lenders Specialising in Tenant Guarantor Loans 

Online lenders such as UK Credit, Everyday Lending and Bamboo Loans (See our Partner Lenders) specialise in loans in the UK. These lenders often provide a streamlined online application process. If you wish to apply with any of our lenders, you only need to submit your application. It will take a couple of minutes to fill in the required information. You can apply to multiple lenders with us with a single application form and get different quotes. 

Comparison of Interest Rates and Terms from Different Lenders 

Comparing different loan quotes in terms of interest rates and APRs from various lenders will help you find the best offer. If you apply to one lender and do not research, you might miss out on proposals with a comparatively lower interest rate. A loan with a low-interest rate will help you save money in the long run. 

LoanTube makes it easy for you to compare loan quotes in terms of interest rates and APRs, as we have a single application form. You do not have to visit multiple websites and fill in different application forms to get loan quotes. You can get various loan quotes with a single application form. 

Also, as you will get all the available offers on the screen, you can easily compare and choose the lender whose offer seems feasible. 

Considerations for Choosing a Reputable Loan Provider 

Now that you know how to apply for a tenant loan with a guarantor, you must know how to find a reputable lender for your needs. 

Listed below are a few factors you must consider while choosing a reputable lender: 

  • Regulation: Ensure the lender is authorised and regulated by the Financial Conduct Authority (FCA).
  • Customer Reviews: Review previous borrowers’ reviews and testimonials to gauge customer satisfaction.
  • Transparency: A reputable lender provides transparent information about terms, fees, and responsibilities.
  • Accessibility: Choose a lender that offers customer support and assistance throughout the loan term.
  • Experience: Consider lenders with a proven track record in providing tenant guarantor loans.
Rights and Protections for a Tenant and Guarantor in a Loan

There are various rights a tenant and the co-signor can exercise if they find something that could be more financially comfortable for them. To exercise your rights, you must know what they are and the protections you can get as a tenant and a guarantor while borrowing the loan. 

Understanding the Legal Obligations of the Tenant Guarantor 

You will be under a few legal obligations when you sign the dotted line for your loan. When you agree to enter into a legal contract with the lender or the financial institution, you must adhere to the terms and conditions agreed by you while borrowing the loan. 

Your legal obligations may include but not limited to: 

  • Repayment Responsibility: The guarantor is legally bound to repay the loan if the tenant defaults.
  • Loan Terms: Adhering to the terms and conditions outlined in the loan agreement.
  • Communication: Cooperating with the lender and tenant to ensure proper loan management.

Rights and Protections for Tenants and Guarantors Under the UK Law 

You will have your rights and protections as a tenant and co-signor. 

  • Clear Information: The lenders shall provide precise details about the loan, including terms, risks, and obligations.
  • Consent: Guarantors must give informed consent, understanding their commitment before becoming co-signors. 
  • Dispute Resolution: Access to dispute resolution mechanisms in case of disagreements.

Clarifying the Duration and Scope of the Guarantor’s Responsibilities 

As a guarantor, you must know the exact role you will be playing in the loan. The lender should clearly explain the risks you will take, which may impact your future borrowings.  

  • Duration: The period during which the guarantor’s commitment remains active, often coinciding with the loan term.
  • Scope: The extent of responsibility, usually limited to loan repayment rather than additional charges or penalties

Ensuring Transparency and Communication between Tenants and Guarantors 

The communication regarding the loan must be clear and regular between the tenant and the guarantor. If the tenant at any point feels that they may not be able to repay the loan, they must immediately talk to their co-signor. 

Also, the guarantor should discuss anything troubling them regarding the loan with the borrower so that they are both on the same page. 

Here are a few tips to help you get started on maintaining transparency: 

  • Open Discussion: Tenants and guarantors should openly discuss loan terms, obligations, and potential risks.
  • Documentation: Keep copies of the loan agreement and all communications for future reference.
  • Regular Updates: Maintain communication throughout the loan term to ensure both parties are informed about repayments and any changes. 

How much can I borrow with a tenant guarantor loan?

Crunching numbers was never this easy – check your affordability at the click of a button. Secure your future by making an informed financial decision.

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Representative Example

Loan Amount


Loan Term

18 Months

Total repayment


Monthly repayment





59.97% p.a (fixed)

*The rate you get will depend on your individual, financial circumstances. Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk.

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Do lenders give instant decisions on tenant guarantor loans?

Each lender has a different process for making a decision. Documentation begins after the lender approves your loan. Once all the formalities are complete, your lender will deposit the funds in your account. After you receive the funds, you can use them at your discretion, albeit responsibly. 

How to step out of a tenant guarantor loan agreement?

If you or the guarantor don’t settle the debt, it may not be possible for you to get out of your guarantor agreement. You can terminate your guarantor agreement if:

  • The borrower repays the loan in full. 
  • The guarantor pays off the entire loan. 
  • You can reduce the repayment burden if your lender declares insolvency. 
  • You and your lender agree to a new payment plan to make smaller payments over a longer period.
  • Pay off the outstanding loan with a new loan. However, be careful not to spiral into debt. 

Paying the dues would be the simplest way to end the guarantor agreement. As soon as both parties fulfil their obligations, the contract will be null and void. 

What is the maximum amount that I can borrow through LoanTube?

You can borrow up to £35,000 for 12-84 months with LoanTube.

Does LoanTube charge an arrangement fee on tenant guarantor loans?

Our mission is to help you find the right loan – we do not charge an upfront fee from our users.

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Representative APR Example

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

Representative APR Example: On an assumed loan amount of £1,000 over 18 months. Rate of interest 59.97% per annum (fixed). Representative 79.5% APR. Total amount payable £1,554.10 of which £554.10 is interest. 17 equal monthly repayments of £86.09, and the final month’s payment of £90.57.

Some of the offered loans might be classed as High Cost Short Term Loans. APR rate starts from 18.22%. The maximum APR rate is 1721%, but you will get a personalised rate tailored to you. The minimum repayment term is 3 months, the maximum repayment term is 7 years. The minimum loan amount is £250 and the maximum loan amount is £35000.

Warning: Late repayment can cause you serious money problems. For more information, go to moneyhelper.org.uk

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