Compare Guarantor Loans using the Representative Payment Example and APR. We are a comparison website which is authorised and regulated by the FCA as a credit broker. To keep our site free, we may receive an introductory commission from the lenders we refer to and this will be highlighted by the red buttons. Simply click on the lender of your choice and Talk Loans will manage your application through to completion with your chosen lender.

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Bamboo Loans

Bamboo offer guarantor loans and unsecured loans from £1,000 to £8,000 and repaid over 1 to 5 years. 
Loan Amount£1,000 to £8,000Representative APR49.7% APR (£1,000 to £8,000)Loan Term1 year to 5 years Representative Example: The representative APR is 49.7% APR (fixed), so if you borrow £2,600 over 3 years at a rate of 41% p.a.(fixed) you will repay £126.61 per month & £4,557.89 in total.
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UK Credit (Homeowner Guarantor)

UK Credit are one of the leading guarantor loan lenders. Borrow up to £10,000, no upfront fees, 39.9% APR and applications won't affect your credit score. Your data and loan application will be processed by Talk Loans.  
Loan Amount£1,000 to £10,000Representative APR39.9% APR (£3,000 to £10,000)Loan Term1 year to 5 years Representative Example: £4,500 over 3 years, representative 39.9% APR fixed. Monthly payment £201.15 Annual interest rate 34.05% fixed. Interest payable £2,741.40. Total repayable £7,241.40.
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Buddy Loans

Buddy Loans are the new, friendly guarantor lender. Borrow up to £7,500 with no fees and a friendly service. All  credit considered. Homeowner and tenant guarantors accepted. 
Loan Amount£1,000 to £7,500Representative APR49.9% APR variable (£1,000 to £3,000)Loan Term1 year to 5 years The Representative APR is 49.9% APR (variable) so if you borrow £2,500 over 24 months at a rate of 41.16% p.a (fixed) you will repay £154.54 per month & £3,750.17 in total.
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Amigo Loans

Amigo Loans is the largest guarantor loan lender in the UK. The Bournemouth-based company has approved over 200,000 loans since they were founded in 2005. 
Loan Amount£500 to £10,000Representative APR49.9% (£500-£10,000)Loan Term1-5 years Representative Example: The Representative APR is 49.9% APR (variable) so if you borrow £4,000 over 3 years at a rate of 49.9% p.a (variable) you will repay £195.16 per month & £7,025.76 in total.
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TrustTwo Loans

TrustTwo is one of the most popular guarantor lenders in the UK. Customers can borrow up to £7,500, repay over 5 years and homeowner and tenant guarantors are accepted. 
Loan Amount£1,000 to £7,500Representative APR43.8% APR (£1,000 to £7,500)Loan Term1 year to 5 years Borrowing £4,000 over 3 years at an interest rate of 36.9% p.a. (fixed), you will repay 36 monthly payments of £185.27. Interest payable £2,669.72. Total repayable £6,669.72. Representative 43.8% APR.
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TFS Loans

TFS Loans let you borrow up to £15,000 and repay in monthly instalments. They are an established guarantor lender and have been around since 2009. 
Loan Amount£1,000 to £15,000Representative APR39.9% APR (for loans £8,000 - £15,000)Loan Term2 years to 7 years Representative Example: The Representative APR is 39.9% APR (fixed) so if you borrow £8,000 over 5 years at a rate of 39.9% p.a (fixed) you will repay £279.20 per month & £16,752.00 in total.
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1Plus1 Loans

1Plus1 are a trustworthy and reliable lender offering guarantor loans ranging from £500 to £5,000 that are repaid over 12 to 60 months in equal instalments. 
Loan Amount£500 to £5,000Representative APR45.4% APR variable (£500 to £5,000)Loan Term1 year to 5 years The Representative APR is 45.4% APR (fixed) so if you borrow £3,000 over 3 years at a flat rate of 23% p.a (fixed) you will repay £140.84 per month & £5070.24 in total.

What is a Guarantor Loan?

A guarantor loan refers to borrowing a few hundred or thousands pounds from a lender but there is a guarantor involved, usually a friend, family member or colleague who agrees to ‘guarantee’ repayment to the lender if the borrower cannot repay.

To recap, there are three people involved in guarantor loans as shown in the diagram below:

The Borrower, The Guarantor and The Lenderguarantor-loans

The three parties are connected. The Borrower can receive and pay money to the lender. In some cases, the Guarantor initially receives the loan that is funded and has the choice to give it to the Borrower or change their mind and give it back to the Lender without any further charges, sometimes known as a two-week ‘cooling period.’ And of course, the Lender gives money and and receives money from both the Borrower and the Guarantor.

From the lenders point of view, this type of loan provides less risk and extra security than your standard loan because if the customer cannot repay, they assume that the guarantor can step in and cover the cost. Since the lender feels more confident, you will see lower rates than other competitive loans and larger amounts you can borrow.

What Are Guarantor Loans Used For?

Guarantor loans are typically used for lifestyle purchases and since you can borrow up to £15,000, we appreciate what a difference it can make to someone’s life. Over the years, we have received requests and funded loans for the following:

  • Home improvements
  • Weddings and engagement rings
  • Emergency purposes i.e medical visits and home repairs
  • Tuition and education fees
  • Debt consolidation
  • Moving home
  • Funerals

Since you receive the drawdown in one lump sum, you are able to use the cash advance towards your purchase and then you have several months or years to repay your debt. This type of loan should not be used for unnecessary or impulse purchases as it is better suited to lifestyle or emergency expenses.

Guarantor Loans For Bad Credit

The guarantor loans we feature are common for people with bad credit who may have been denied loans from other traditional lenders. Despite having a less than perfect credit score, you are still able to get the finance you need by introducing a guarantor into the mix. By leveraging their credit score and potential homeowner status, and they are willing to back you for a loan, this gives your application real credibility and makes the lender feel that they can trust you too.

What is great about this product is that it gives borrowers who have bad credit an opportunity to prove their creditworthiness and improve their credit score. By repaying on time, the lender will feed back the information to a credit reference agency such as Experian or Equifax and this will improve the customer’s credit score.

Best Guarantor Loans With Low APR

We feature our guarantor lenders based on the fact that they are registered companies in the UK, have a valid consumer credit license and strictly adhere to the regulatory requirements of the Financial Conduct Authority (FCA).

We try to display lenders that have a low APR, which is typically 39.9% to 49.9% and can be found using our comparison table above. Other cost factors to consider include the representative example, to get an idea, and the length of the loan as the longer you have the money, the more interest accumulates over time.

Other characteristics  include being able to repay early at no extra cost. Since guarantor loans can last up to 7 years, you may not require the loan for that long. If you need the funds to pay for an emergency or get your finances back on track, you may only require the loan for a few months. It would make sense to repay the loan early and since the loan is usually based on a daily interest rate, it may be cheaper to repay the loan early. The best lenders have no early repayment fees but some lenders may charge a fee for clearing your debts sooner.

Am I Eligible?

The application for the lenders we offer is completely online. To be eligible, you must have the following criteria:

  • Over 18 years of age
  • Living and working in the UK
  •  Have a working email address
  •  Have a working debit account
  • Have a guarantor

Once you click through to apply to one of our lenders, it will take around 5 minutes to complete the application and you will be asked enter the contact details of both the borrower and the guarantor. Most of the guarantor lenders we work with will run credit checks believing this is vital to deciding whether you will receive a loan or not. There are always affordability checks that are run as part of the process – this refers to taking all your income and expenditure and deciding how much you are able to borrow and how much you can afford to repay. Good affordability checks provide the customer with just the right amount they can afford and making sure that they are not asked to borrow too much. Lenders will typically request a bank statement from both the borrower and the guarantor to get a better idea of their affordability.


Provided that you have passed all the checks carried out, to complete the final stages, the lender may carry out a phone call to confirm some details. If the main borrower is unable to repay their loan, the guarantor is liable to make the repayment on their behalf. That is why a phone call is important for both sides to ensure they fully understand the terms and conditions. An email is sent to both parties and there will be a unique verification link which will take you to an electronic loan agreement with all the terms and conditions. To save the hassle of printing things off, signing them and posting them off, the entire agreement can be completed online.

The funds are usually sent on the same day once all the details have been verified, so the usual start to finish process is around 1-3 days/ The money is deposited into the debit account of the guarantor and he will be given a few days to decide whether he wants to transfer the funds to the borrower or change his mind and give the money back to the lender without any additional fees. This is a standard measure to ensure the guarantor is a real person and is fully aware of the responsibilities at stake. The borrower will make the repayments in monthly instalments and there is usually the option to repay early with some lenders not charging any fees for early repayment and some putting a small penalty in place.

How are Guarantor Loans Different to Payday Loans

The main differences include the loan amount, duration, interest and the extra person part of the loan agreement. A payday product simply involves the borrower and the lender and is designed to be repaid at the end of the month on your next pay date, so overall, it should only last 2-4 weeks to cover emergency expenses.

By comparison,  the guarantor product requires an extra person as part of the transaction – and if that extra person has a good credit rating, it means that you may be able to borrow more and for longer. As the loans last up to 7 years, they give those with less than perfect credit the time they need to repay, improve their financial situation and credit rating. See the table below for the differences between typical guarantor and payday loan products:

 Guarantor LoansPayday Loans
Representative APR39.9% to 49.9%1,270%
Loan Term1 to 7 years14 days to 6 months
Loan Amount£500 to £15,000£100 to £1,000
Guarantor RequiredYesNo
Upfront FeesNoNo
Same Day FundingYesYes

Source: Uncle Buck and Citizens Advice Bureau

How Our Site Works

Our comparison table gives you a full overview of the different rates and terms available. We constantly update our list of lenders to ensure that they are the most compliant, responsible and are actively lending funds and not just going to decline your application. The sites we feature are fully licensed and do not charge upfront fees. You have peace of mind that your application will not be shared with any lenders without your consent and you will certainly not receive information from several lenders as our entire process has been made to avoid this.

We have an individual page for each lender that we feature to give you a better understanding of the service they offer and a bit more information about the company. It is important to understand that each lender has their own pricing and by comparing effectively, you may be able to save a few hundreds pounds on your loan. We only want to show you lenders based in the UK so you have lenders that you can trust and can contact them easily whenever you need to.

treating-customers-fairlyWe are passionate about Treating Customers Fairly which is why we ensure that every lender featured on the site is authorised by the FCA and is committed to responsible lending. This means that the lenders are licensed to offer loans in the UK and will treat any personal information you provide with complete security and confidentiality. The guarantor loan companies we work with will carry out sufficient affordability checks to make sure that you can repay what you have asked to borrow and this could mean adjusting the amount you have requested. Part of finding the right product for the customer and being extra safe, they will not recommend you borrow more, even if you can afford to do so.

Our site is completely free to use and we will never charge you a fee for using our service. Our website is on an secure server (https) which adds an extra level of encryption so that your data and cookies are extra safe. We are pleased that you have chosen our website and hope that you can use our comparison service efficiently to find the right loan for you.