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Guarantor Thank You

About our loans


Guarantor Thank You

About LendFair Loans

LendFair offer Fixed Term "Guarantor" Loans. The loan amount, term and rate varies depending on the product you choose, but the following shows what is available;-

  • Amount: £500 to £10,000
  • Term: 6 months to 5 years
  • Representative APR from 29.9% (Fixed) to 47.9% (Fixed)
  • No arrangement fee
  • No early settlement fee
  • Interest rebates for early repayment (pay only while you borrow!)
  • No late payment fees (interest applies on outstanding balance)

A fixed term loan repays both the loan advance and interest added over the term of the loan. So long as you make your regular monthly repayments, you will repay the loan IN FULL over the agreed term. Transparent, simple and FAIR; It's our name on the tin!

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So how does it work?

You must be 18 or over, 20 or over for some loans, and have a UK personal bank account, you will also need a Guarantor who will undertake to repay the loan if you don't; for whatever reason. All LendFair loans require a guarantor. A guarantor will be somebody that knows you and trusts you, such as a friend or relative.

In all cases your guarantor can be either a homeowner or tenant (for at least 1 year, but 5 years for our best loans) but must be under the age of 75, or 73 for our best loans, at the date of signing; there are no exceptions. Select your guarantor and get their agreement BEFORE starting your loan application, as we will contact them during the approval process. What if you are being asked to be a guarantor?

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How much can you borrow?

Simply as much as you can comfortably afford to repay, but we advise that you only borrow the amount you need.

So select your preferred type of loan (ensure you can meet the conditions for both yourself and your proposed Guarantor) and use our loan calculator to see the applicable monthly payment for any given loan amount. Remember, you must be able to afford the regular monthly repayments after all your usual outgoings; the same will apply to your guarantor.

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When do I get the money?

Once we have approved your application, and approved your guarantor, we simply transfer the requested loan amount to the bank account of your guarantor. The whole process can be pretty quick, depending on how quickly you and your guarantor respond, but in most cases it is within 24 hours and can sometimes be the same day. Your guarantor then simply transfers the money to you. Getting your guarantor on-board before you start the loan application will speed up the process. We always aim to pay out within 2 working hours of final approval.

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How do I make my monthly repayments?

By direct debit, via a debit card linked to your normal UK personal bank account or by bank transfer. We will even send you an SMS three days in advance to remind you that your payment is due!

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Will I be Credit Checked?

When you apply for a LendFair Loan we will look at your guarantor's credit file at credit reference agencies (CRAs) such as Equifax, Call Credit or Experian. These agencies will also provide us with credit information about you including information from the Electoral Register. This credit search is used to check your identity and your eligibility for a loan. The credit reference agencies will add details of our searches and your application to the record which they hold for you.

The credit reference agencies will also add details of any loan agreement with LendFair to your file, the payments you make under it and any default or failure to keep to its terms. Your credit reference agency record(s) will be seen by other organisations that make searches with those agencies.

To prevent fraud, we will check your details with fraud prevention agencies (FPAs). If you provide false or inaccurate information and we or the agencies suspect fraud, we or the agencies will record this.

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Agreement

We are required by Law under the Consumer Credit Act to provide you with certain information when you apply for a loan. This information will be specific to you and the loan you have requested. If you would like to see a copy of our pre contract information, sometimes referred to as SECCI before you apply, please click on the following Pre-Contract. Please note this will contain no financial information or personal data unless you complete the application and submit it.

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What next?

Simply select the product that suits you and your proposed guarantor and apply online at Apply. The application takes less than 5 minutes. Use the funds to consolidate other debts, invest in your business, education, or to reorganise your life in the knowledge that you have chosen affordable, fixed, monthly repayments.

What is a guarantor?

A guarantor is somebody that is legally bound to repay a loan if the borrower can't; for whatever reason.

In all cases the borrower will be known by the guarantor and is trusted. This is usually a relative, friend or employer.

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Choose a guarantor

Your guarantor is almost certainly going to be a good friend or family member, because they know you the best, and because they trust you. Remember, your guarantor will have to repay the loan if you can't; for whatever reason.

Talk to your potential guarantors early, and find one or two that are happy to be put forward as part of your application.

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So, who makes a good guarantor?

  1. They know and trust you - that's the most important point.
  2. They can be a homeowner or tenant of at least 1 year (5 years for certain loans), at the same address and can afford to make your monthly repayments, if you cant; after all their normal outgoings.
  3. 3. They are aged between 20 - 75 at the date of the loan application (25 -73 for certain loans).
  4. They have not had trouble paying their bills in the recent past.

Are you considering how to become a guarantor?

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Become a guarantor?

You have been asked by a good friend or relative to be their guarantor; what does that mean? Firstly, it means your friend or relative is applying for a loan or other form of credit and because of their personal circumstances the lender, in this case LendFair, has asked for a guarantor. Simply put if you Trust the borrower to make their monthly loan repayments on time, then we trust them, and LendFair will, subject to completing certain checks, agree to lend them the money.

However, as guarantor you must not take the decision lightly, if you agree, then you enter a legally binding agreement to make regular monthly loan repayments if the borrower fails to do so. You will never be asked to pay more than the borrower would pay under the Fixed Term Loan Agreement.

We will contact you to explain all aspects of the loan process and your obligations. We also undertake a short interview to ensure you are able to make regular repayments in the event the borrower ceases to make them.

Most importantly you must be comfortable with the decision and not feel you are being pressured to act as guarantor. If you are not a homeowner, don't worry, we can still consider you as a guarantor if you are a tenant and have been at the same address for at least 2 years (5 years for certain loans).

So do you meet the following criteria:

  • Homeowner or Tenant at the same address for the last 1 year (5 years for certain loans)
  • Aged 20-75 (or 25 – 73 for certain loans)
  • Have a UK personal bank account
  • Can afford the monthly repayment after normal outgoings (only if the borrower fails to pay)


If you answered yes to all the above, then in principle you can be a guarantor. But do you want to be? Use our following quick test to establish if the decision to be a guarantor is right for you:

  1. Do you trust the borrower to make the regular repayment amounts?

    If the answer is no then you should simply decline to stand as guarantor.
  2. Would you lend them the money yourself if you had it?

    If the answer is yes, then you might consider that option if you have the money, but then you will be responsible for managing the loan, collecting the payments etc, which may affect your relationship. It also means that you don't have access to your funds quickly if you need them yourself. However, "yes", suggests you would be comfortable as a guarantor.
  3. Are you happy to pay for any late or missed payments if the borrower doesn't make them?

    If you answer no, then you probably shouldn't stand as Guarantor.
  4. Do you want to help the borrower build a good credit rating?

    By allowing the borrower a loan in their own right, with your support as guarantor, you allow the borrower the potential to build or improve their own credit score.


So if you are happy to be a guarantor you can look at the form of guarantee you will sign here. Like everything with LendFair, it is clear and transparent (as far as we make it under the Consumer Credit Act)

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Credit scoring

When you offer to be a guarantor we will look at your credit file at credit reference agencies such as Equifax, Call Credit or Experian. These agencies provide us with credit information about you including information from the Electoral Register. This credit search is used to check your identity and your eligibility to act as a guarantor. The credit reference agencies will add details of our searches and your application to the record which they hold about you.

To prevent fraud, we will check your details with fraud prevention agencies. If you provide false or inaccurate information and we or the agencies suspect fraud, we or the agencies will record this.

We and other organisations may use and search these records to help make decisions about credit and credit related services for you and members of your household, prevent fraud, recover debt, trace debtors and generally manage your account(s) as well as to check your identity to prevent money laundering.

If a guarantor can't make payments, when required (only if the borrower fails to make them), then we work via dialogue and best practice to sort the problem.

You may want to look at other questions and answers specifically relating to being a guarantor at our FAQS (Gtor)

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