Anyone over 18 years of age and living in the UK can act as your guarantee whether it’s a friend, family member or work colleague.
Guarantors are likely to be people that you have a close relationship and are able to discuss your finances with openly. A good guarantor is someone who can help you out – they may not be able to lend you the money but they can certainly support you in your efforts to obtain affordable finance and improve your credit score.
The person who acts as your guarantor will make quite a difference as to whether your loan application is accepted or not. There are certain guarantors that will increase your chances of being funded and we discuss these below:
What makes a good guarantor?
It is good to have a guarantor with good credit. By running a credit check, the lender can see how well you and your guarantor have repaid other forms of credit such as credit cards, personal loans and car loans. Therefore, if your guarantor has a good credit rating, the lender feels confident that if you are unable to make repayment, that your guarantor will be able to cover the costs. The lender will also believe that if the person with good credit trusts that borrower, then the lender can trust them too.
On a similar note, homeowners are notoriously very good guarantors. In order to own a property or get a mortgage, you need to demonstrate a high level of creditworthiness. Furthermore, the lender believes that if your guarantor has property, they have a fixed address, are easy to contact and are unlikely to leave the country
Can my spouse be my guarantor?
Yes, your spouse can be your guarantor provided that they have a better credit score than you do. In the case that you have joint finances such as a joint bank account, then your spouse cannot be your guarantor.