Tenant Guarantor Loans

Representative Example:

Borrow £3,500 over 12 months, repay £311.81 per month, total repayable £3,731.96. Interest rate 12.7% (variable). Representative APR 12.7%.


Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk.

Tenant guarantor loans allow you to borrow £1,000 to £10,000 even if your guarantor is a tenant or currently living in rented accommodation. Whilst some guarantor lenders only accept guarantors that are homeowners, we work with a number of select lenders who are will to accept guarantor loans for tenants. You just need someone with a good credit score and stable income and who willing to cover loan repayments if you cannot.

The online application from Payday Bad Credit takes less than 5 minutes to be complete and you can get a pre-approved quote on the screen. If successful, you can receive funds to your bank account within 24 hours. To get started, simply check your eligibility below.

What Are Guarantor Loans for Tenants?

Some guarantor lenders require you to have a guarantor who is a homeowner, because it confirms that they have a permanent address and more likely to have a stable income and strong credit score if they have been approved for a mortgage.

However, over the last few years, more guarantor loan providers have been willing to accept tenant guarantors, considering that more and more people are renting these days and if the individual has a regular income and good credit history, they can absolutely be a good guarantor.

The most successful guarantors are usually family members such as parents, siblings, partners and also close friends. You ideally want someone who you can trust and can speak to about your finances openly.

What is the Criteria for Applying? 

  • Borrower must be over 18
  • Borrower must have stable income and employment
  • Borrower must be able to afford repayments
  • Guarantor must be over 25
  • Guarantor must have good credit score, stable income and employment
  • Guarantor can be a tenant or living with family, although homeowners preferred
  • Both parties should have valid UK bank account
  • Both parties should have UK mobile and email address

How Much Can I Borrow with a Tenant Guarantor Loan? 

Typical guarantor loans are available up to £15,000, however the maximum you can apply for a tenant guarantor loan is usually capped at £10,000.

This is to reflect the added risk that a tenant does not have a permanent address and if they move, they could be harder to get hold of and be trickier to claim any losses.

Someone who owns a home or property could potentially raise funds if need be, whether it is selling their property, renting out a room or getting a second mortgage. A tenant may not have this luxury, but they may still have a strong financial position to be a successful guarantor.

To maximise the amount you can borrow, you should have:

  • A guarantor with a strong credit score
  • Stable income and employment
  • Higher income, the more you can borrow (subject to affordability)
  • No recent defaults or numerous outstanding loans

Are Tenant Guarantor Loans Different to Non Homeowner Guarantor Loans?

Tenant guarantor loans and non-homeowner guarantor loans are the same thing. It considers that you can have someone who is not a homeowner to be your guarantor. Maybe your desired guarantor lives with their parents or they are living in rented accommodation, provided that they are a regular income and good credit history, they can be eligible to guarantee your loan. 

What if My Guarantor is Living at Home or with Friends?

Yes, the lenders partnered with Payday Bad Credit are willing to consider any guarantors that are still living at home with their parents or friends.

The guarantor you choose must be over 25, have a solid income, regular employment and a good record of paying other similar loans and credit cards on time. This will give the guarantor lender confidence that they will be able to recover any losses from the guarantor if the main borrower cannot meet their repayments.

How is Payday Bad Credit Different?

At Payday Bad Credit, we are focused on providing good loans for people with bad credit – including guarantor loans for tenants. We work with the whole of the market of bad credit lenders and can offer you a pre-approved quote on the screen, with no upfront fees or impact to your credit score.

Our entire application is completed online and if successful, you can receive funds transferred to yours or your guarantor’s bank account within 24 to 48 hours – or sooner. To get started, simply click on the apply now button below.

Representative example:

Borrow £3,500 over 12 months, repay £311.81 per month, total repayable £3,731.96. Interest rate 12.7% (variable). Representative APR 12.7%.

Payday Bad Credit is a trading style of Western Circle Limited – Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority.
FCA full permission license: 714479
ICO Registration Number: Z3305234

Payday Bad Credit terms and conditions apply.

Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Payday Bad Credit responsible lending policy. Loan limit maximum of £10,000.

In most cases, loan decisions may take up to 30 minutes during office working hours.
If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.