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Tenant Guarantor Loans

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

Loans up to £35,000

Borrow for 12-84 months

Collateral-free guarantor loans

Accessible loans for homeowners and non-homeowners

What are tenant guarantor loans?

Tenant guarantor loans, in essence, are guarantor loans where both the guarantor and the primary applicant can be a non-homeowner or a tenant. If you apply for a guarantor loan as a tenant with a low credit score, the lender may ask you to bring a guarantor to co-sign the loan. A guarantor is a close friend or family member who participates in the loan’s repayment responsibility with you.
Now, if you fail to oblige to the loan’s terms and conditions by defaulting on the loan, the liability of repayments will fall on your guarantor. Your guarantor can be a homeowner or a tenant, meeting the following criteria:

  • Should be a legal UK resident.
  • Should have an active bank account in the UK.
  • Should have a strong credit history.
  • Should be aged between 21 and 75.
  • Should be earning a steady income.

How does a tenant guarantor loan for non-homeowners work?

Normally, when you apply for an unsecured personal loan with a below-par credit score or low income, lenders might ask you to present a guarantor to back your loan. However, you could also find onboard a guarantor if you’re looking to get low-interest rates or borrow a more significant loan amount. 

Once your non-homeowner guarantor co-signs the loan, they agree to partake in the loan’s obligations, such that the onus of repayments falls on the guarantor if you fail to repay. While the primary borrower will face severe credit score damage, missing refunds on loan could also be detrimental to the guarantor’s credit score. 

Since your application heavily relies on the guarantor’s credit, lenders normally require that the guarantor has a decent credit score and steady income. Following your approval, the guarantor and you will need to complete certain contractual formalities. Following this, the lender will transfer the funds directly into your bank account. It will help if you use this credit responsibly. 

What can I use a tenant guarantor loan for? 


You can use a tenant guarantor loan for whatever you like. However, you should spend the money very responsibly since a cosigner is involved in the loan. Generally, you can use a tenant guarantor loan to:

  • Consolidate high-interest debt.
  • Cover emergency medical expenses. 
  • Regulate household cash flow. 
  • Pay for car repair. 
  • Finance minor home improvements. 

What to consider: Tenant guarantor loans vs. tenant personal loans

In a guarantor loan, a friend or family member guarantees the loan on your behalf. Homeowner guarantors are preferred over tenant guarantors by some lenders for several reasons, such as:

  • A homeowner guarantor is likely to have good credit because they purchased the property.
  • Homeowner guarantors can use their property to pay off the loan if the borrower defaults.
  • To recover their money, a lender would find it easier to contact a homeowner guarantor.

However, it is now common for lenders to accept tenants as guarantors. Any guarantor or borrower could default or miss repayments, regardless of whether they’re a homeowner or not.

As a guarantor, you can improve your credit score by paying your household bills and clearing your credit card debts on time. You can typically apply for a tenant guarantor loan in these circumstances:

  • A verbal agreement governs the tenancy
  • Paying Guests
  • Tenancies that are regulated
  • A written agreement governs the tenancy
  • Rent-paying students
  • Company-sponsored tenancy
  • Living under a joint tenancy agreement
  • Short-term Tenancy
  • Living on Excluded Tenancy

What to consider before borrowing a tenant guarantor loan?

Consider the following factors when choosing a tenant guarantor for a guarantor loan:

Is this a suitable loan amount for me? Figure out how much you can borrow if you have a tenant guarantor. Do not borrow more than you will be able to repay when the time comes.

Will I be able to commit to the loan term?

Commitment and discipline are essential for long-term loans. You may make smaller payments on a long-term loan, but the interest rate is higher. Choose a loan term that fits your current and future financial circumstances.

What happens if I miss a repayment?

If you miss a payment, you could lose 150 points off your credit score. The loan’s default will result in 350 credit points and a County Court Judgment (CCJ). CCJs stay on your credit file for six years, making it more difficult to secure credit in the future.

Do I need a contingency plan?

It is imperative to have a contingency plan to ensure timely payments. You should consider your options carefully before taking out a tenant guarantor loan. 

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.

No guarantor loan calculator

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How much do you wish to borrow?
What repayment term would you like to choose ?

Representative Example

Loan Amount


Loan Term

3 Years

Total repayment


Monthly repayment





41% 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 MONEYADVICESERVICE.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 £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

Our APR rate starts from 15.6%. The maximum APR we offer is 249.55%, but you will get a personalised rate tailored to you. The minimum repayment term is 1 year, the maximum repayment term is 20 years.

Warning: Late repayment can cause you serious money problems. For more information, go to MONEYADVICESERVICE.ORG.UK

Credit subject to status & affordability assessment by Lenders.

LoanTube is a credit broker and not a lender.

Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on any debt secured against it.

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