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.