The short answer is yes! Some people think that guarantor loans are the best kind of loans that can help you with your poor or bad credit history. In the process of guarantor loans you don’t need to posses any property of your own and also your credit history can also be bad, that does not affect the loan that you will borrow. The lenders are interested in the guarantors in this kind of loans, a guarantor needs to have a good credit history and also some kind of household property that is rightfully guarantors, that way the lenders can be sure that the money they lend to you will be provided back to them in certain period of time. The guarantor takes all the obligation for you and is in charge of the situation.
Guarantor cannot be anyone, a guarantor can be only a person who trusts you and who can rely on you that you will repay the loan that was given, this is a bid risk for the guarantor since he doesn’t get anything in the process but if he trusts you and you are in a right position to repay the loan in arranged period of time, then this kind of loan is the best one. People all over the United Kingdom have started to turn up to the guarantor loans, it is the safest and fastest way to get to a large sum of money that might help you get out of a debt, repay some other loans or even help you do something for yourself that might help you later in the future.
The people who can be a guarantor for you are mostly your friends, family members, parents or even business partners. They are the people who trust you and who want to help you get back up and start over with your financial situation. In some cases it is hard to find a person who wants to guarantee for you, since they are putting their property and their financial situation on a risk because of a loan that they will not even get.
There are two kinds of guarantor loans, the secured and unsecured loans. The unsecured loans are called personal loans, and they have role of providing you the loan up to £ 20,000 that you need to repay in arranged period of time, mostly 1 to 5 years depending on the agreement that was made. With unsecured loans you don’t need to posses any property of your own, and also you can have a bad credit history as long as you have a guarantor you can get a loan.
With secured guarantor loan it is different, you need to posses some kind of property that will need to put on mortgage in order for you to get the loan, secured guarantor loans provide a larger loan than personal loans. With secured guarantor loans you can borrow up to £ 250,000 and repay it over 10 to 15 years depending on the agreement that vas made.