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What are the responsibilities of the guarantor?

You are legally obliged to pay the loan back on behalf of the main borrower if they default on the guarantor loan. This is why you should always make sure you have fully understood the potential implications of becoming one when signing a loan agreement. However, you will not need to do anything if the main borrower pays back the loan. You will only need to pay money in the event that the main applicant falls into financial difficulty and can’t pay the loan back, or simply chooses not to. What does being a guarantor involve? The biggest potential responsibility […]

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Can I stop being a guarantor?

No, unless the loan is fully repaid by you or the main borrower this is not possible once the two week initial grace period has finished. After you have signed up to be a guarantor in a formal loan agreement, you have to keep to the terms of the contract. This is why you should make sure you have fully understood the potential financial complications and legal obligations you have when you sign up to become one. Why can I not stop being a guarantor? The guarantor lender has agreed to lend money largely on the basis of your financial […]

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Who could be my guarantor?

Almost anyone can be your guarantor. In most cases people tend to choose one of the following to obtain their loan: Parents Spouse Sibling Grandparent Friend Colleague However, there are certain requirements that an individual needs to meet to become a guarantor. For example, most lenders will require the guarantor to be: Over 21 years old A good credit score Financial stability Homeowner (though not always a necessary requirement) Whether you are asking someone to be a guarantor or someone has approached you to be one, you should make sure it is someone you trust and you are aware of […]

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Loans worth £45m borrowed by NHS staff

It has been revealed that employees of the National Health Service collectively borrow on average a staggering £45 million in payday loans each year, according to recent statistics published in the past week. What does the data reveal? The analysis on the payday loan industry was carried out by fintech company FairQuid and based on data by CashLady, and it revealed that NHS employees made up the highest proportion of payday loan applications across the country. This equates to about 3.5% overall. The main reason that was given as to why the applicant had decided to take out a payday […]

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Nesta Challenges launches £2m in prize money to increase affordability in the lending industry

Nesta Challenges have recently launched the Affordable Credit Challenge, in the hopes of creating incentive for community lenders and fintech companies to partner up and develop solutions to help improve affordability within the lending industry. The funding organisation has claimed that high-cost credit loans do have “a role to play in the market” however, “too many people have been turning to these lenders […] when it has not been appropriate for their own personal situation.” Whilst community lending and other not-for-profit lenders can provide a better means of borrowing for people in particular financial situations, studies have shown that many […]

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Mortgage rates fall for those with bad credit

Are you struggling with a bad credit score, and either have a mortgage or looking at getting one? We have some good news for you! It appears in new research that the average rate for credit-impaired borrowers with a mortgage has fallen. Mortgages for those with bad credit Those who damaged their credit score – for example, getting into a cycle of debt with not being able to keep up with repayments for things such as payday loans or guarantor loans – have been well-known to typically receive much higher interest rates – and as a result, higher overall repayments, […]

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What is personal finance paralysis?

Find it difficult to make a decision about whether to apply or cancel a credit card or personal loan, or perhaps hesitate on going ahead with that mortgage application or a payday loan for bad credit , or which lender to go with in the first place? Sound all too familiar to you? Well, you may well be experiencing the common phenomena of personal finance paralysis. What is Personal Finance Paralysis? Personal finance paralysis is pretty much self-explanatory, but to be clear, it explicitly refers to a fear of making a wrong personal finance decision. Being scared of making a bad choice […]

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Budget 2018: Zero-interest Loans

On Monday the 29th of October, the Chancellor of the Exchequer Phillip Hammond released the budget. He explained his intentions for the budget in the House of Commons at 3:30pm, which was also live streamed on the BBC and other channels. One thing that stuck out for those in the lending industry or people who regularly seek the services of payday loans for bad credit, was the introduction of a scheme which features zero-interest loans. This scheme is to be introduced to help people overcome debt and is set to help out about 3million people across the UK who have […]

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What is Universal Credit?

Universal Credit is a payment which is designed to help people with their general living costs. Universal Credit is relatively new and has been introduced to replace six benefits offered by the government in one package rather than many. The following are benefits Universal Credit has replaced: Child Tax Credit Housing Benefit Income Support Income-based Jobseeker’s Allowance (JSA) Income-related Employment and Support Allowance (ESA) Working Tax Credit If you currently receive any of those benefits, you cannot claim Universal Credit at the same time as those. However, since Universal Credit is being introduced in stages, you do not have to […]

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Who is eligible for Universal Credit?

You may have heard about the introduction of Universal Credit by the UK government. Many people are expressed their state of confusion surrounding what it is and what the introduction of Universal Credit hopes to achieve. Essentially, Universal Credit is a payment which aims to help people with their general living costs. It is paid into your account monthly if in England and Wales and twice a month for some people in Scotland. How do you get Universal Credit? You may be eligible for Universal Credit if you are on a low income or if you are out of work. […]

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