Terms and conditions - guarantor loan

ReadingTim

Not really sure why you need the small print, given you're planning on repaying each and every month, as agreed. You are planning on doing that, right...?!?

MEM62

roundbox wrote: »

Hello
I'm thinking of getting a guarantor loan, but I can't see the terms and conditions that would apply to the borrower and the guarantor.

Thanks

I'll give you the basics.

* The guarantor has to be in good financial standing and the money is usually paid into their account.
* The guarantor then passes the money onto the borrower.
* The borrower fails to keep up repayments and the and the guarantor is lumbered with paying back the loan. (In addition to their credit standing taking a hit)

In effect, by slight of hand, the lender has very cleverly lent money to someone with a good credit history at sub-prime interest rates. You gotta admit, it's an inspired business plan and all it takes to be successful is the combination of one desperate individual one gullible one.

There are two pieces of advice that will save both you and your guarantor a lot of heartache and money.

1) If you need a guarantor loan you should not be borrowing money. You need an alternative solution to your situation.

2) If you and you guarantor cannot be talked out of this arrangement your guarantor would be better off getting a loan in their name (at a much lower interest rate) and you cover the loan payments each month. Your monthly payments will be much lower and your 'guarantor' will have less to pay back when you default.

badmemory

DCFC79 wrote: »

Are you sure you want a guarantor loan ?

Well obviously Roundbox would, but the choice of guarantor may be a problem, they may have read a few threads on here about guarantor loans.

roundbox

Thanks for the useful advice.


So does anyone actually have the Terms & Conditions for the Borrower and Guarantor?
I know they will vary slightly from lender to lender, but broadly they will be much the same.

DCFC79

roundbox wrote: »

Thanks for the useful advice.


So does anyone actually have the Terms & Conditions for the Borrower and Guarantor?
I know they will vary slightly from lender to lender, but broadly they will be much the same.

Why is it you want the T&C's ?

If you don't pay then they go after the guarantor.

Carrot007

roundbox wrote: »

Thanks for the useful advice.


So does anyone actually have the Terms & Conditions for the Borrower and Guarantor?
I know they will vary slightly from lender to lender, but broadly they will be much the same.

In case you have not realised yet the sane option is.


Get the Guarantor to take aout a loan themselves at a much better rate.


Sign a contract with them to pay this back. (So they can take you to small claims if you do not pay).



You are both then subject to much better terms and conditions and the Guarantor is in no way pretending that they (and not you) are taking out a loan.


If the Guarantor will not do this then they would be stupid to become a Guarantor for a loan for you.

MEM62

DCFC79 wrote: »

Why is it you want the T&C's ?

Because, despite all the advice the OP has received, he is still thinking of going ahead. Some people will continue on the path to disaster even when faced with all the evidence that they should do otherwise. How long do you think it will be before the OP's guarantor posts asking how he can escape his responsibilities once the OP defaults.

DCFC79

MEM62 wrote: »

Because, despite all the advice the OP has received, he is still thinking of going ahead. Some people will continue on the path to disaster even when faced with all the evidence that they should do otherwise. How long do you think it will be before the OP's guarantor posts asking how he can escape his responsibilities once the OP defaults.

Thanks MEM, I was hoping the OP would provide an answer.

dealer_wins

Guarantor loans should be banned. At best they are a blatant ripoff, but I would go further and say they are a bigger problem than the PPI one.

MEM62

DCFC79 wrote: »

Thanks MEM, I was hoping the OP would provide an answer.

I think we all would but, as with many posters, once you get to the point where they are not hearing what they want to hear they bail out -presumably to pursue the path that they wanted to anyway regardless of all the advice to the contrary. They are on a path and will not be swayed.

I struggle to understand it really. OK, I get that the OP didn't ask whether a guarantor loan was a good idea and was asking about the T'c & C's but you would think that, based with the advice he was given, he would think twice. I guess that people are not do easily saved from their own recklessness - if they were there would be fewer desperate posters seeking help when it is effectively too late.