Many people can be guarantors, but it should be someone you trust – for most people, this is a family member or close friend.
Some lenders have their own rules about who can be a guarantor, but in general, a guarantor must:
- have a good credit history
- be at least 21 years old, or 18 in some cases
- live in the UK (in case the lender needs to take legal action).
To be a guarantor, you’ll also need separate back account to the borrower. You can still act as a guarantor for a partner or family member you share a bank account with, as long as you also have a separate one.
The lender will need proof that the guarantor will be able to pay off the loan if the borrower can’t, so they might have additional requirements. For example, the lender might ask for:
- proof that they’re working
- proof of income
- the guarantor to be a homeowner.