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What is the guarantor's responsibility?

A guarantor’s responsibility is to make loan payments if the borrower doesn't. This is why we run through an affordability assessment; we want to make sure that the guarantor is able to take on the commitment.

However, wherever possible, we will always work with the borrower first and come to an arrangement before looking to the guarantor to pay. We will also inform the guarantor of any arrangements made with the borrower.

We’ll only ever ask the guarantor to pay in line with their agreement and in the best interests of both the borrower and guarantor. Doing so helps prevent any negative implications of the account remaining behind, such as the arrears increasing and the loan term extending.  

If the borrower was to enter into an IVA, go bankrupt, simply stop paying or pass away, then the guarantor would become solely responsible for each monthly repayment until the loan is cleared.

When considering if you should be a guarantor, we recommend you ask yourself the following questions:

·         Do you trust this person to make all the payments on time every month?

·         Is the monthly repayment something they can afford?

·         Are you comfortable with making these payments on their behalf should anything go wrong?

If you are comfortable with the guarantor responsibilities, meet the criteria above and trust the borrower, then we will too.

Our Guarantor Loans