What you need to know
- A guarantor is someone who is prepared to pay off your loan if you are unable to do so.
- It’s great to be able to help our friends and family by being a guarantor, but a guarantor needs to make sure they would be able to pay back the full amount of the loan if the borrower can’t.
- Lenders must make sure that like borrowers, guarantors have all the key information about the loan before they sign up and that they understand what they are committing to.
- Guarantors have the same rights as borrowers – make sure you read ‘Signing up to a loan’.