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Tag: Guarantor

Can guarantors remove themselves from a Tenant Guarantor Loan contract?

If you are planning on acting as a guarantor for someone or perhaps planning to ask someone to be your guarantor when applying for a tenant guarantor loan, consider the following.

One the loan agreement is signed and the money is deposited into a banking account, the guarantor is bound by the contract, and cannot remove themselves from it.

Therefore, choosing the right guarantor is imperative. At Big5 Loanswe pride ourselves on the fact that we go the extra mile to ensure that the applicant and the guarantor they have secured are educated thoroughly regarding the product.

Let’s look at a few common questions we face during this education process.

Why can’t a guarantor be removed?

Well, as someone that has agreed to pay the monthly repayments should the applicant not be able to, the guarantor is crucial in the application process for the loan. That is why we determine if they are fit to act as guarantor by checking their credit history, affordability, age and other factors that determine whether they are suitable or not. For this reason, they cannot be replaced at all, especially as a new person might not have the necessary credentials to act as a guarantor, significantly changing the risk profiles attached to the loan agreement.

Can we replace my guarantor?

No, for all the reasons mentioned above. In some circumstances, the spouse of a guarantor can replace them in the case of a death. This often is a choice that the lender will have to make.

My guarantor wants out! Is there a way?

There is only one way for a guarantor to be released from their obligation – the loan must be paid up in full and the agreement, therefore, terminated. Luckily, by paying a little more than the required monthly premium, it is possible to repay the loan earlier than the terms agreed. Note, you may be charged a slight interest adjustment if the loan is paid off within a certain time frame.


I have an idea! What about more than one guarantor?

Unfortunately, that is not possible. We do suggest that when applying for tenant guarantor loan that you have a few possible people in mind to act as a guarantor in case your first choice is not suitable. Remember to discuss this with them beforehand.

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Tenant Guarantor Loans

Financially, we all understand that times are hard!

With the economic downturn since 2008, many people are living from payday to payday, carefully budgeting to ensure that they can keep their families fed and clothed. Unfortunately, this does not cover those unforeseen expenses that happen from time to time – things such as medical bills, car repairs or even an untimely family bereavement.

It is in times such as these that we have to turn to the many loan or credit products available on the market. We at Big5 Loansspecialize in both tenant guarantor and logbook lending products. These are quickly becoming one of the favoured loan products in the UK.

What is a tenant guarantor loan?

When applying for a tenant guarantor loan you will need another party to co-sign the loan and act as a guarantor. This provides extra security for the lender and in turn means that more money can be lent at far better interest rates.

Before with guarantor loans, this person had to be a homeowner but with the tenant version of this product, they no longer have to.

This is particularly helpful as more and more people are finding it far more difficult to own their own home in the current economic conditions.

Who is eligible to sign as a guarantor?

Well, this is up to you. Most people approach their partner/spouse, parents, other family members, friends or even colleagues from work. There are a few requirements, however.

The guarantor needs to

  • Be younger than 65 years of age.
  • Have an excellent credit history.

They can be employed or retired while their income level is of no significance to the application. Of course, they will be subjected to credit checks. By signing the loan contract, this guarantor will be subject to meeting the monthly loan repayments should you not be able to. Rest assured, when applying for such a loan, all of these details are discussed in great depth before any application is processed and any loan approved.


What documents do you need to apply for a tenant guarantor loan?

As with any credit product application, you will need to bring in the following documents when applying for a tenant guarantor loan.

  • Proof of address.
  • Proof of income (we will need your three most recent payslips).
  • Proof of identity (either an identity document, passport or drivers licence).
  • A breakdown of your monthly expenses.


How long does the loan application take?

If you have all the correct documents and your guarantor on board, the application itself should not take more than 48 hours. We understand that by coming to take a loan, you need the money urgently, and for this reason, we do everything in our power to ensure we process everything as quickly as possible.

To apply for a loan, either phone our call centre, email us or come and visit our office. Remember, together with your guarantor, you will need to physically sign documents. For this reason, a trip to our office is perhaps the best way to apply for the loan.

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