Guarantor loans with instant payout

Compare guarantor loans

• Guarantor loans
• Guarantor loans (guarantor is homeowner)

1 - 1 of 1

How much do you need to borrow? £

5000

How long do you need to borrow for?

3

years

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Name	Product	Ratings	Customer rating	Finder score	Total Payable	Monthly Repayment	Representative APR	Link
1plus1 Loans Guarantor Loan		Finder score ★★★★★	Not yet rated	★★★★★ Expert analysis				Check eligibility View details	Representative example: Borrow £10,000.00 over 3 years at a rate of 47.8% p.a. (fixed). Representative APR 47.8% and total payable £17,259.12 in monthly repayments of £479.42.	Compare	loading Fetching your data...

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1 - 1 of 1

How much do you need to borrow? £

5000

How long do you need to borrow for?

3

years

Sort by:

Name	Product	Ratings	Customer rating	Finder score	Total Payable	Monthly Repayment	Representative APR	Link
Norwich Trust Limited Unsecured Homeowner Loan		Finder score ★★★★★	Not yet rated	★★★★★ Expert analysis				View details	Representative example: Borrow £15,000.00 over 3 years at a rate of 27.9% p.a. (fixed). Representative APR 27.9% and total payable £21,430.80 in monthly repayments of £595.30.	Compare	loading Fetching your data...

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How do guarantor loans work?

Guarantor loans have to go through a few more steps than a traditional personal loan in order to get approved and funded. They’re not normally a case of “computer says no” or “computer says yes” – more often than not, a human being (rather than an algorithm) will make the final decision on your application.

Your guarantor will need to complete their part of the application, and the lender may want to talk the loan over with both you and your guarantor before proceeding.

If a lender promises “instant” guarantor loans, it’s not being straight with you. However, if it promises “instant payout” this means it will pay out immediately following approval. As a guarantor loan involves three separate parties – the lender, the borrower and the guarantor – the process tends to be slower than a traditional loan application, although a same day application and transfer of funds is possible.

Tips to speed up your loan

While most lenders will attempt to process and approve your loan on the same day, there’s a variety of things that can delay your application, or even result in it being rejected. If you and your guarantor make sure your application form is as accurate and honest as possible, you will increase your chances of approval.

• Be realistic about what you can afford. If you’ve looked at your finances and you’re confident you can meet the repayment schedule of the loan that you’re applying for, there’s a better chance that the lender will reach the same conclusion.
• Put truthful and accurate information in your application form. Make sure you and your guarantor are being honest with each other about your finances. Also double check that the application form is correct.
• Check the minimum eligibility criteria before you apply. Make sure both you and your guarantor fulfil the separate criteria.
• Prep your guarantor. Make sure your guarantor is aware of the responsibility they are taking on and is on hand to complete their part of any online forms, and if necessary, to speak with the lender over the phone. It’s also the guarantor who actually receives the funds from the lender, so you’ll need them to transfer the funds to you.
• Choose your guarantor carefully. OK, you probably don’t have dozens of potential guarantors waiting in the wings to help you get a loan, but if the lender likes your guarantor, you’ll stand a much better chance of getting your loan quickly. Have a look at our guide on who can be a guarantor.
• Be available. Both you and your guarantor need to be able to take a call from the lender or to respond to emails.

One guarantor lender that we spoke to explained that it is more often the guarantor (not the applicant) that fails the approval process.

What affects the turnaround time?

Although a lender may offer an “instant” approval, there are a number of factors which could affect the time it takes to process and approve your application and transfer the funds.

• Business hours. Lenders usually have set hours in which they process and approve loans. Most lenders are closed overnight, on Sundays and Bank Holidays.
• Availability of applicant and guarantor via phone and/or email.
• Transfer to guarantor’s account.
• Errors in application form.
• Lies in application form. Lenders look at both the borrower and guarantor’s credit history and monthly income and outgoings, so will be quick to see if this is at odds with what details you have supplied.
• Guarantor fails checks. The borrower may need to find an alternative guarantor.
• The underwriting process (ie some loan purposes will require further investigation).
• If the lender can’t verify your ID, address and income with a credit reference agency, they will need to see documents.
• If your guarantor lives in Ireland or Scotland, it could take the lender a little longer to process the application.
• If the lender has a busy period.

How long will it take me to get a guarantor loan?

Many lenders offer a same day approval service, which is possible as long as you and your guarantor meet the specified criteria.

When we spoke to one guarantor lender, it said it could take as little as 45 minutes to approve and fund a loan application. More commonly, it could take a couple of days.

Frequently asked questions

• Do both the guarantor and borrower require a credit check?

  Yes, the lender will run a credit check on both of you before making a decision to approve your application.

• Why do the funds get transferred to the guarantor instead of the borrower?

  This is to avoid fraud and to guarantee the guarantor named in the paperwork really is the guarantor.