Applicant in Scotland - Guarantor in England?!!!

VIPJEN13

I will give you a brief background but basically have around £6k debt from years ago that I have buried my head in the sand about and finally decided to take control of things. A lot of debt was from an abusive relationship years ago (can't prove that it wasn't my debt!). Not sure if this is why its taken me nearly 10 years to try and sort it all out and face it! Some of it was admittedly me when I was young and stupid. Anyway I', in a long term relationship now and my partner and I are very good with money and have a good income. We would love to buy and he has worked hard to improve his credit score which is now quite healthy.


I need to sort out my credit score now with the ultimate goal of a mortgage in a few years time. I've got a credit card with a very small limit and been using it wisely to increase my credit score. My brother works for a debt management with a high street bank so I do get good advice from him!


Anyway after sorting out all my creditors building up the courage to speak to step change and much deliberation over the best coarse of action I decided, with advice , to go down the route of a guarantor loan. I have written agreements from the debt companies that the debt will be removed from my credit file as soon as it is settled in full. We thought this option was better than a Scottish Debt management plan. I can afford the loan repayments but still use my recent credit (not my previous old history) wisely like my credit card etc. This is helping my score and like I say there is no issue with being irresponsible etc and I'm in a loving relationship

So...My brother is willing to be my guarantor and with a good credit history and a home owner etc and I have enough income for the repayments etc all should be well. However I live in Scotland and he lives in England and we are struggling to get a company that will provide a loan as the laws in Scotland and England ( I gather to do with enforcing debt repayments etc) are completely different!!! Any advice would be much appreciated. It's an unusual circumstance when 1 sibling is English and 1 is Scottish!

[Deleted User]

What actually appears on your credit files? When will the defaults drop off?

Ignore the credit scores as these are entirely meaningless - you need to see what's good and what's bad on your three files.

I'm not sure that a further loan is the best way forward - especially if you are not incurring interest on your current debts.

System

NEVER EVER EVER ASK ANYONE YOU LIKE TO BE A GUARANTOR FOR A LOAN. If you default they are wholly liable for it.

Given that your brother would be liable for the loan you are far better off asking him to get one in his own name and give you the money and you repay him. That way he has no more or less liability than he would being a guarantor but you get to benefit from having a reasonable interest rate instead of 50% or more so instead of repaying over £11,800 for a £5000 loan repaid over 5 years you could repay just £5500 making you over £6000 better off than going with someone like Amigo Loans.

Gambler101

Ill second what Tarambor says. Never get a loan with a guarantor its not fair.

You could become ill, lose your job, or even die, and the poor guarantor has to pay for your debt!

And also the APR on guarantor loans is a rip off!!

VIPJEN13

If anything were to happen my partner would be able to repay also. I wouldn't ever expect my brother to pay. Gutted as we actually found a loan that didn't have sky high APR like amigo etc. but because the whole Scotland/England thing it would not let us continue.


Technically as I am Scottish by debt would die with me


Yes I suppose that is another option we could look at although even if he got the money and gave me it I would still have to repay him but he would have no comeback if I did stop paying ( I WOULD NEVER DO THAT!!) Just pointing out that I still have to pay the debt regardless! I see what you are saying though re APR etc.

Pixie5740

I cannot believe that Step Change would advise you to take out a guarantor loan. A loan with Amigo isn't going to make you look good to mortgage lenders it will do quite the opposite.

Edit: Actually I see you want to ignore Step Change's advice that would see the interest frozen in favour of getting a loan with a rate of 49.9% APR. The mind boggles.

-taff

Is this debt statute barred? It's 5 years for Scotland

Gambler101

VIPJEN13 wrote: »

If anything were to happen my partner would be able to repay also. I wouldn't ever expect my brother to pay.

With respect its easy to say that, but between you you have unpaid debts going back 10 years. Think about what you are writing and planning to do please.

VIPJEN13

Pixie5740 wrote: »

I cannot believe that Step Change would advise you to take out a guarantor loan. A loan with Amigo isn't going to make you look good to mortgage lenders it will do quite the opposite.

Edit: Actually I see you want to ignore Step Change's advice that would see the interest frozen in favour of getting a loan with a rate of 49.9% APR. The mind boggles.

I never said it was with Amigo, I never said it was 49.9% APR either. There were various reasons we decided on the debt consolidation loan route. With the debt management plan I had to give everything up and have no credit but actually some of the credit, like my card, as I am using it cleverly is having a good input to my credit score. I am in apposition to pay off the debts and be clear' of them in 36 months which would feel great. I am responsible with money and would be fine paying of my debt, the interest has been frozen on them anyway. For some it may be easy but I have found it hard to open up and talk about money. I came on here looking for people in the same boat, trying to do better and to get advice from people. Not to be lambasted! Sorry your mind it boggling....

VIPJEN13

Gambler101 wrote: »

With respect its easy to say that, but between you you have unpaid debts going back 10 years. Think about what you are writing and planning to do please.

And now I'm sorting them out. People change, I'm not 18 any more, I have a good job and am responsible. I haven't spiralled out of control, I just need to sort out this historical debt. Silly of me and would let myself be put in an abusive situation again. Mentally takes quite a bit to face up too, and I don't mean the debts. Sure is a lot of judgemental people on here.

VIPJEN13

-taff wrote: »

Is this debt statute barred? It's 5 years for Scotland

Yes it is. I just want to be debt free and improve my credit score. Looking at different options and happy to take advice. Only been a member on here a few hours!