Guarantor My Loan is a loan lender providing affordable guarantor loans to UK borrowers since they were founded in 2014. They have a peer-to-peer lending model which benefits both lenders and borrowers who are looking for more affordable rates than they could get elsewhere.
They are authorised and regulated by the Financial Conduct Authority (FCA). Guarantor My Loans always make sure both the borrower and the guarantor can afford the loan repayments and that both parties have a clear understanding of how the loan works as they move forward in the process.
Guarantor My Loan uses a peer-to-peer model for its lending. This means that individuals can lend via their lending platform – obtaining good rates in return for their money being lent out to Guarantor My Loan’s borrowers.
Peer-to-peer lending refers to lending money to “peers”, without going through a “typical” financial intermediary such as a bank.
This is a method that has been successfully done in other areas, and Guarantor My Loan has found it to be a system that works well for their customers on both sides of the equation.
Payday lenders (and other types of shorter-term credit which are aimed at those with a less-than-perfect credit history) can have expensive rates and difficult repayment terms.
Guarantor loans bridge the gap and give customers suffering to find a loan elsewhere the opportunity to not only borrow a wide range of credit amounts but also pay back over a practical period that keeps their instalments manageable and helps them to build up a good credit history.
This type of loan is unsecured, meaning the customer does not have to use any valuables or property as security on the loan and they also do not need to be a homeowner to apply.
Guarantor My Loan offer loans of up to £10,000 payable in monthly instalments over 1 year to 5 years.
The monthly payments are split manageably and provided that the first twelve consecutive repayment instalments are made on time and in full – guarantors may be entitled to a rebate of one-twelfth of the sum of 12 instalments.
Guarantor My Loan offers fixed rates so the customers can be sure their payments won’t change and they offer weekly and fortnightly payment options.
Customers will not be able to secure a loan without a guarantor – Guarantor My Loans are specialists specifically for guarantor loans. The customer doesn’t necessarily need to have a guarantor before they begin their application for a loan, but the process is much faster if they do.
Guarantor My Loan aims to get the money into the customer’s guarantor’s account on the same day that their application for a loan is accepted and cleared through their systems.
They also allow their customers to pay their loan off early with no additional charges, simply any interest and services fees that may be applicable up to that point.
Guarantor My Loan’s eligibility criteria is:
- Over the age of 18
- Must live in the UK
The customer’s guarantor must fit into the following criteria:
- They must own their own home
- Must have a good credit history and have enough income each month to cover the loan repayments
- They must have an active UK bank account
- They must be at least 21 years old and no older than 75 by the end of the loan term
A representative example from Guarantor My Loan is £4,000 over 36 months, representative 48.9% APR fixed with monthly payments of £193.56.
The interest is 17% per annum fixed and the service fee is 23.48% per annum fixed. Interest payable £1,246.63 and service fee payable £1,721.53. Total repayable is £6,968.16.
If the customer fails to pay a monthly repayment, then Guarantor My Loan may charge the customer a fee of £11.50 for each month (or part of a month) that any repayment remains overdue.
If a payment is missed, Guarantor My Loan will immediately contact the customer and their guarantor. If they are not able to contact the customer or agree on a payment arrangement with them, then Guarantor My Loan will discuss the missing payment with their guarantor.
In this situation the customer should always try to communicate their problems with Guarantor My Loan otherwise there is the risk that a one-off missed payment could result in further action being taken. This action could hurt the customer’s credit rating.
Guarantor My Loan provides a link that allows the customer to download a free app for mobile phones that helps them manage their direct debit payments.
The customer will need to register each of their direct debit payments onto the app to receive reminders of when a payment is due. The app does not have access to any ‘live’ direct debit data, payment system or bank accounts.
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Guarantor My Loan Reviews and Ratings
Guarantor My Loan has received mostly positive reviews and ratings across sites such as Trustpilot, Choose Wisely and Reviews.io. The number of reviews they have received is relatively limited in comparison to other companies which does influence how representative the reviews are.
Guarantor My Loan does have a Facebook account linked to their website, though it does not currently appear to be active.
They also have a Twitter account that is protected (a customer would need to follow them to see their Tweets) and has 1,494 followers.
Some customers have praised the company for their thorough communication at every point of the loan process as well as the ease of the application process. Many customers were very happy with the service they received from Guarantor My Loan.
Some customers were unhappy with the amount of communication they received from Guarantor My Loan and felt frustrated with the processes of the application for a loan.
Trustpilot – 4.6/5 (Based on 361 reviews)
Choose Wisely – 4.9/5 (Based on 181 reviews)
Reviews.io – 4.90/5 (Based on 10 reviews)
- Specialist in their field of guarantor loans
- Competitive rates offered
- Fixed payments with weekly and fortnightly payments offered
- No early repayment fees
- Positive reviews online
- More experienced financial companies are available
- Must have a guarantor for this personal loan
- Late payment fee
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