Guarantor Loans Non Homeowner – when would you need a guarantor loan?
One, when your credit history is not that great and you are being turned down by lenders.
Two, when you need a bit more money than what your financial profile and credit history would allow you to get.
Find out more about getting a non homeowner guarantor loan.
Lenders have various credit score requisites.
If you satiate the requirement, then the loan amount is approved or rejected based on your income.
In case you don’t get qualified for a particular loan amount, then you can choose to offer some kind of security.
A guarantor is one of the easiest options because most people don’t own assets that would be considered worthwhile by the lenders.
Cars and homes are worthwhile assets. But movable goods or depreciating commodities are not acceptable.
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Now, what are the primary requisites of a guarantor?
A guarantor must be a resident in the UK, should be at least twenty one years of age, should have a bank account, must have a credit history regardless of the score and the financial profile should be good enough.
An unemployed person cannot really be the guarantor.
However, there are exceptions such as cases where the guarantor has a plush property.
In any case, a guarantor needs to be a homeowner for most lenders to consider offering such unsecured loans.
A tenant guarantor is not entertained by many lenders.
Hence, what if you don’t have someone you know who has a good financial profile, credit score and is a homeowner?
You need guarantor loans for non homeowner.
Guarantor Loan Lender’s Criteria
There are two ways to look at this.
Many lenders need the borrower to be a homeowner and the guarantor to be a homeowner.
Some lenders are willing to overlook the first one as long as the guarantor is the homeowner.
Some lenders will be willing to consider lenders and guarantors, where neither of the two owns any property.
That is what you get with guarantor loans non homeowner.
There are very few lenders that would offer you guarantor loans for non homeowner because the risks for them are substantial.
The borrower or the guarantor owning a home is enough security without which the lenders are vulnerable.
But with short term loans and small loan amounts, one doesn’t really need the security of a home or property.
The income and the credit score of the guarantor, which is basically the financial profile as a whole, should be good enough.