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Consolidating Guarantor Loans

Borrow from £5,000 to £75,000.

Varying loan length limits from 12 months.

Simple, clear application process to help you find the right way to manage your existing debt.

Regain control of your finances, take out a loan, and make one simple monthly payment.

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What Are Guarantor Loans?

A guarantor loan is a type of unsecured loan that requires a second person, the guarantor, to co-sign the loan agreement. This person guarantees to repay the loan if the borrower defaults on their repayments. Guarantor loans are designed to help those with poor or no credit history to borrow money.

The guarantor is typically a close friend or family member with a good credit history. They act as a form of security for the lender, providing assurance that the loan will be repaid. This type of loan can be a beneficial financial solution for individuals who might struggle to secure a loan due to a bad credit score or lack of credit history.

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The Role of a Guarantor

The guarantor plays a crucial role in a guarantor loan. They are responsible for covering the loan repayments if the borrower fails to make them. This is a serious commitment, as it could potentially affect the guarantor’s credit score and their relationship with the borrower.

Before agreeing to act as a guarantor, it’s important to understand the responsibilities involved. The guarantor needs to be confident that the borrower can afford the repayments. If the borrower fails to repay the loan, the guarantor will be contacted by the lender and expected to cover the loan repayments.

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How Do Guarantor Loans Work?

When applying for a guarantor loan, both the borrower and the guarantor are assessed by the lender. The lender will check both parties’ credit scores and financial situations to ensure they can afford the loan repayments.

Once the loan is approved, the borrower receives the loan amount and is responsible for making the monthly repayments. If the borrower fails to make a repayment, the lender will contact the guarantor to step in and make the payment.

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Our Expert comments on the risks of being a guarantor.

Financial Expert Andrew Hagger.

It is advised to exercise caution when considering becoming a guarantor on someone’s loan. While being a guarantor can help a friend or family member secure a loan that they might not otherwise be able to obtain, it also carries significant financial risks. If the borrower cannot make their loan payments, the guarantor will become responsible for repaying the debt. It is important for potential guarantors to carefully evaluate the borrower’s ability to repay the loan and consider the potential risks before agreeing. If you do decide to become a guarantor, it is important to carefully review the terms and conditions of the loan agreement, including the interest rate and repayment schedule. It may also be wise to consider obtaining legal advice and consulting with a financial advisor before signing any loan agreement as a guarantor.

— Andrew Hagger, at Consolidation Expert.

What Are the Benefits of Guarantor Loans?

Guarantor loans can offer a few benefits. For borrowers with poor credit or no credit history, these loans can provide an opportunity to borrow money that they might not otherwise have access to. Regular repayments on a guarantor loan can also help to improve a borrower’s credit score over time.

For the guarantor, helping someone secure a loan can be a rewarding experience. However, it’s important to remember that being a guarantor comes with significant responsibilities and potential financial implications.

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Consolidate Guarantor Loan Debts with Consolidation Expert

At Consolidation Expert, we understand that everyone’s financial situation is unique. That’s why we may be able to offer a range of consolidation loan options, including to consolidate guarantor loans. Our application process is straightforward and transparent, and we’re committed to providing our customers with the best possible service.

If you’re looking to consolidate your guarantor loan debts, a consolidation loan through Consolidation Expert could be the solution you need. With varying terms and competitive rates, we may be able to help you find the right loan for your circumstances.

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Representative 14.8% APR

We are a broker, not a lender.

Representative Example: Borrowing £15,000 over 60 months, repaying £355.28 per month, total repayable £21,316.57.

Total cost of credit £6,316.57.

Interest rate 14.8% (variable).

The lenders on our panel offer loans for 12-360 months, with rates from 4.7% APR to 42.6% APR.

The Representative Example is based on all loans paid out by lenders between 1st Jan 2022 and 31st Dec 2022.

Discover If You’re Eligible for Guarantor Loan Debt Consolidation, Apply with Consolidation Expert Today

Consolidation Expert is committed to helping you find the best financial solution for your needs. Our team of experts is on hand to guide you through the process of applying for a consolidation loan, ensuring you understand all the terms and conditions before you proceed.

With Consolidation Expert, you can rest assured that you’re in safe hands. We’re authorised and regulated by the Financial Conduct Authority, and we pride ourselves on our transparent and ethical approach to lending.

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Frequently Asked Questions about Guarantor Loans

Consolidation Expert is a broker with a large lending panel that offers a range of consolidation loan options, including consolidation loans for guarantor loan debt. We aim to find financial solutions for individuals with various credit histories, including those with poor credit or no credit history.

Yes, you may be able to as a guarantor is seen as reducing risk for creditors. However, we understand that it may be difficult to get a loan, even a guarantor loan, with poor credit history and so our panel of lenders offer consolidation loans as an alternative solution. This way, we may be able to find loans even to those with bad credit history. If you’re not certain whether you’re eligible or not, apply with Consolidation Expert today.

To act as a guarantor, you must typically be over 18 years old and a UK resident. You’ll also need to have a favourable credit history and be able to provide proof of income. It’s important that you can prove you’ll be able to pay back the loan you’re guaranteeing if the recipient of the loan defaults.

The APR for a guarantor loan will vary depending on the individual circumstances of the borrower and the guarantor. The loan broker or lender will provide you with more detailed information of the APR offered.

You can apply for a consolidation loan to consolidate guarantor loan debt with Consolidation Expert online. Our application process is straightforward and easy to complete. You can receive an initial personal loan quote without affecting your credit score.

Remember, a guarantor loan is a serious financial commitment for both the borrower and the guarantor. It’s important to consider your financial situation carefully before applying for a guarantor loan. If you have any questions or need further information, our team at Consolidation Expert is here to help.