Published: 04/05/2021

Guarantor loans for non-homeowners


We are “1 Plus 1 Loans” and we provide guarantor loans for people just like you.

Guarantor loans for non-homeowners

We recognise that borrowing money at an affordable rate is becoming a seriously difficult job for those who don’t own their own home or with bad credit ratings. Those who need it most.

That doesn’t seem fair to us. So, we offer loans that don’t rely purely on credit scores – just on whether customers could afford the repayments without any hardship or problems for the duration of the loan. That’s why we're a better kind of guarantor loan.

Don’t own your own home and struggling to get a loan? A guarantor loan is worth looking at. Backed by a guarantor, you could be able to borrow up to £10,000. Is a guarantor loan the answer to your dark borrowing outlook or should you be heading down another route? Let’s look at the pros and cons and “need-to-knows” of non-homeowner guarantor loans.

You don’t need to be a homeowner to get a guarantor loan. I you’ve a poor credit rating, borrowing against an asset such as a house or car is a common way to increase the probability of being accepted for a loan. With a guarantor loan you don’t need provide an asset as security. Instead, you ask someone who knows you well to back your borrowing. If you fail to stick to your repayment schedule, and miss payments, your guarantor will be asked to make those payments instead.

A guarantor doesn’t have to be a home-owner – fortunately, as home ownership is at its lowest level for 30 years. At 1Plus1 guarantor loans we prefer guarantors to be homeowners, but it’s not a requirement. So, if both you and your guarantor are renting, this could still be an option for you. You will need to fulfil our creditworthiness and affordability criteria to be accepted.

Guarantor loans aren’t suitable for everyone. If you’re unsure whether this type of borrowing is for you, take plenty of time to check them out before you and your guarantor commit.

If you’ve been guilty of borrowing irresponsibly in the past, lenders may be unwilling to take a risk on you without the backing of a guarantor, particularly if you have a CCJ.

You should always really consider whether borrowing is in your best financial interests. Only borrow what you know you can comfortably afford to pay back, particularly when your guarantor’s credit rating is at risk as well as your own.

If you’re already struggling with your credit, contacting an organisation that offers free debt advice, such as the government’s Money Advice Service could provide you with helpful advice.

If you’re ready to apply for a guarantor loan, you can start your application here