Co-Signature loans have only lately started to become a popular offering by loan companies in Britain. The main reason behind the rise in popularity has been the increasing difficulty tenants and non-homeowners are encountering getting finance at the moment due to the impact of\issues caused by the financial credit crunch as banks and financial institutions tighten their lending criteria. The situation is made even worse if there is a history of poor.

What is Co-Signature Loan?

A guarantor loan is a type of unsecured loan where an arrangement is made between a third party and the Lender that guarantees that the loan will be repaid, should the borrower be unable to meet the repayments. This arrangement is a legally binding contract.

Who Do They Benefit?

Because the loan is not secured against a property or car or anything else, guarantor loans are particularly suited to anyone over 18 years of age but particularly:-

Tenants, whether private tenants or council

Students or people still with their parents or with relatives

Homeowners with little or no equity in their property

People with a adverse credit record or have been refused loans previously

Will a Bad Credit History Affect My Chances?

Definately not. With a loan of this type, there is no credit check carried out on the applicant, but one is carried out on the guarantor, therefore the guarantor needs to be a homeowner with a healthy credit record. So having a bad credit history will not prevent you from obtaining a guarantor loan. However, if you are bankrupt or in a debt management or IVA plan, you will not be able to get a loan.

How Much Can You Borrow?

With a endorsed loan you can borrow up to £5,000 depending on individual circumstances, over a period of 48 months (4 years)

Who Can Act as An Endorser?

Anyone can act as an endorser, but they must be a homeowner and have a good credit history. The guarantor is not linked to the loan so the debt does not stand as a debt against their name, nor does it affect them in obtaining credit in the future.