Guarantor loans now available Many brokers have asked for access to more fringe products, particularly for clients who have no equity or have adverse credit. Promise already offers the widest panel of secured loans and bridging loans but also provides a wider choice of solutions to complicated cases than any master broker.
In response to requests from brokers we have extended the range of high LTV secured loans, unsecured loans, asset loans to include guarantor loans which have been added to our portal enabling you to quote and apply immediately.
Guarantor Loans won’t suit everyone due to the rates and loan amounts on offer. However, they may be ideal for clients who can’t get credit in own name and, whilst more expensive than secured loans, they are much cheaper than payday loans (which may be one of the few alternatives). The guarantor must be a homeowner but can have historic CCJ’s, defaults or historic arrears. Rates are typically in the region of 46% APR
Details of Guarantor loans
Loans from £1000 to £6000
Age Applicant: 18 – 69 (at end of term) Guarantor: 23 – 69 (at end of term)
Time at Address No Minimum for either Applicant or Guarantor
Disposable Income Applicant £400 (£600 for Loans of £5,500 & £6,000) Guarantor £400 (£600 for Loans of £5,500 & £6,000)
CCJ’s, Defaults & Other Credit Transaction No CCJ’s in the last 36 Months No Defaults in the last 12 Months
Guarantor Mortgage & Secured Loans installments Will be assessed as the full monthly installments regardless if the account is a joint account.
Guarantor Mortgage Conduct No Missed Payments or Arrears in last 12 Months
Guarantor Secured Loan Conduct No Missed Payments or Arrears in last 12 Months
Applicant Homeowners If an Applicant’s residential address is owned in joint names then we will require the agreement to be in Joint names along with Joint names along with the co-owner of the property the co-owner of the property
2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:
Mortgages and Remortgages
£80,000 over 240 months at an APRC OF 4.3% and a discounted variable annual interest rate for two years of 2.12% at £408.99 per month followed by 36 payments of £475.59 and 180 payments of £509.44. The total charge for credit is £39,873 which includes a £995 broker / processing fee and £125 application fee. Total repayable £119,873.
Secured / Second Charge Loans
£63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.
£4,000 over 36 months at an APR OF 49.9% (fixed) and an annual interest rate of 49.9% would be £216.21, total charge for credit is £3,783.56. Total repayable £7,783.56.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME
REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
If you have been introduced to Promise Money by a third party / affiliate, Promise may pay them a share of any fees or commission it earns. Written terms available on request. Loans are subject to affordability status and available to UK residents aged 18 or over. Promise Money is a trading style of Promise Solutions Ltd. Promise Solutions is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.
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