With guarantor finance, another person agrees to make payments if the borrower does not. This is a serious financial commitment for both people, not a simple character reference.
How it works
- The borrower and guarantor provide information for assessment.
- The lender considers the affordability and credit position of both people.
- The borrower remains responsible for normal repayments.
- The guarantor may have to pay if the borrower misses payments.
What to check before you apply
- Exactly when the guarantor can be asked to pay.
- Whether the guarantor could afford the full commitment.
- How missed payments could affect both credit records.
- Whether a non-guarantor option is available.
A realistic note
Both people should read the agreement carefully and consider independent advice before taking on a guarantor commitment.
Frequently asked questions
Who can be a guarantor?
Criteria vary. The person usually needs a stable financial position, UK residency and a suitable relationship with the borrower.
Is the guarantor a joint owner?
Not automatically. Their obligation relates to the finance agreement.
Can a guarantor withdraw later?
Usually not simply on request after the agreement starts.
Important: We Do Car Finance is a credit-broking service operated by Sandhurst Associates Limited. We are not a lender. Finance is subject to status, affordability and lender criteria. Acceptance is never guaranteed.