A guarantor loan is used to refer to money lent out to a borrower on basis that you will provide a guarantor. It is considered as an unsecured form of loan. The guarantor is usually required to co sign the loan and stand as support for the borrower. The idea of a guarantor loan is borrowed form a long tradition that has been standing for centuries. It has been modified and brought back to life as guarantor loan offers. The sole foundation of guarantor loans is built on trust. As long as your guarantor trusts you to pay back the loan, the lender is willing to offer you the loan amount.
The UK has plenty of lenders offering guarantor loans to lenders at good rates. As long as the borrower can find family, friends, or colleagues willing to cosign on the loan undertaking, they can easily get a loan. A good guarantor assures one a loan approval irrespective of one’s credit score.