Don't get your family or friends involved
    Quick Loans With No Guarantor

    We won't ask you to involved your friends or family members when you apply for a loan. All the loans on our site are free of the need for a Guarantor.

    You can apply with the knowledge that no matter what happens, you won't need anyone to help you.

    Quick Loans With No Guarantor

    We won't ask you to provide a guarantor for any type of loan product on this site. The loans here are unsecured. Guarantor relationships are not something that we feel comfortable recommending to our customers.

    What is a Guarantor loan?

    These are loans where a friend or family member will co-sign the loan agreement and agree to cover any missed payments due to financial problems. Some will even require your Guarantor to take over if you die.

    Background to Guarantor Loans

    Guarantor loans have been around for a number of years; we can remember them as far back as the 1990s. They were quite common in car finance arrangements. Parents would often be asked to guarantor agreements in order for their children to be approved.

    Over the last ten years, they have become more mainstream. There are now guarantor credit products for mortgages and unsecured loans. We estimate that they now account for around 20% of the unsecured non-bank lending market in the UK.

    Downsides to Guarantor Loans

    The problem with Guarantor loans is that they are "bankruptcy proof". Even if the borrower files for bankruptcy, the loan will pass on to the Guarantor. This leads to a lot of arguments and breakdowns in what were once positive relationships.

    We feel that Guarantor loans present too many moral hazards for us to recommend them to our customers. In our opinion, loans should be between the lender and the borrower. The lender takes a chance when they issue a loan; if the money is repaid on time, they make a profit, if not, they don't.

    Unfortunately, this type of loan seems to be on the rise as lenders look to take on less risk. It might be that more than half the loans in the future are Guarantor'd, but it won't be something that this site ever gets involved in.

    The only benefit we can see to having a Guarantor'd loan is that it is easier to have an application accepted. From what we know, it isn't cheaper and has no upside at all.

    We would recommend quite strongly to all of our customers that they should avoid these products at all costs.

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