Guarantor Loan FAQs
For the customer
How much can I borrow?
Loans are available from £1,000 to £5,000, subject to status.
How long can I take the loan over?
Dependant on which product you qualify for your loans can be repaid over a period of 12 months to 5 years.
Why do I need a Guarantor?
If you’ve had bad credit in the past most high street lenders won’t provide you with a loan however that doesn’t mean we won’t. We will ask you to provide a guarantor, someone that will make your payments in the event that you can’t. This means we may be able to help you if you’ve had problems or never had finance.
Who can I have as a Guarantor?
Almost anyone can be your guarantor as long as they own their own property. As long as they are aged between 25 and 68, have a good credit history and are not your partner or spouse living with you. This could include your relatives, friends or even a work colleague.
How do I make payments?
Payment’s have to be made by direct debit from your bank account. The Evolution Current Account could meet your needs perfectly.
Who will receive the money?
The loan advance will be paid in to your Guarantor’s bank account. This is an additional security precaution to ensure that they are fully aware that your loan has completed and to prevent any identification fraud.
When will the first repayment be due?
Payments are normally due one month after your guarantor loan completes. We understand that certain times of the month may be more convenient for you – for example just after your payday – so we can be flexible with this payment date.
What if I change my mind after I have signed?
You may cancel the Agreement within 14 days of the date that you sign it. Please contact us on 0161 656 9874 or write to Evolution Money, Lloyds House, 18-22 Lloyd Street, Manchester, M2 5BE. If you would like to cancel the Agreement you will have to repay any money lent to you plus interest accrued to the date of settlement.
What if I have problems making payments?
It is important that all payments are made on time as agreed to ensure that additional fees are not added to your account. If you experience problems or anticipate problems making payments you should contact us immediately and we will do our best to help you. If you do miss any payments we will contact your guarantor as it will be their responsibility to make the payment. The additional administration costs incurred by us will be added to your account. If you continue to miss payments and we are unable to resolve the situation satisfactorily as a last resort we will instruct our solicitors to commence proceedings against you and your guarantor. Any costs charged to us by our solicitors will also be charged to you.
Can I settle my loan early?
Yes you may; the Agreement will detail how your early settlement calculation will be made. You should be aware that if you repay our loan early, the amount you will repay may be greater than the amount you originally borrowed; particularly if you repay any guarantor loan early in its life.
Will my interest rate change?
We know how important it is to you to know how much you will be paying each month so, No, the interest rate charged is fixed. This means it will not change and nor will the monthly payments due to us.
Will there be a fee?
We charge an acceptance fee if you decide to go ahead with the loan. The good news is this is built in to your monthly loan repayment, we won’t ask you to make any payments upfront and should you decide not to take the loan there are no fees to pay.
For the guarantor
What does being a Guarantor mean?
As long as the agreed repayments are made on time there will be nothing for you to do as a guarantor except to sign the documents at the start. If any payments are missed we will ask you to step in and make these payments on behalf of the applicant.
Who can be a Guarantor?
Almost anyone can be your guarantor as long as they own their property. As long as they are aged between 25 and 68, have a good credit history and are not your partner or spouse living with you.
How much am I Guaranteeing?
The amount of the initial loan is detailed on the indemnity form we ask you to sign. As long as all agreed payments are made on time the balance should reduce and the loan will be fully repaid (and your responsibilities discharged) in the term stated on the Agreement. If the applicant asks us to lend them more money we will only do so if our conditions applicable at the time are met. One of these conditions will be that you give your consent.
Can the loan be settled early?
Yes it can; the Agreement will detail how the early settlement calculation will be made. You should be aware that if the loan is repaid early, the amount repayable may be greater than the amount originally borrowed; particularly if the loan is repaid early in its life.
Will the interest rate change?
We know how important it is for the applicant to know how much they will be paying each month so, No, the interest rate charged is fixed. This means it will not change and nor will the monthly payments due to us.
Will the loan show on my credit file?
With your consent we will carry out a credit search on you to confirm that you’re eligible to stand as the guarantor. The search footprint will remain on your credit file showing that we have conducted a search but that is as far as it goes. The loan will not count as a debt against your name or credit file unless you fail to comply with your obligations under the guarantee if called upon to do so.
Can I change my mind to be Guarantor?
You can change your mind at any time providing the loan hasn’t paid out. All we ask is that you inform us in writing should you change your mind. Once the loan has paid out you cannot change your mind and you will be responsible for the repayments on the loan (in the event of default by the debtor) and any other charges until the loan has been paid off.
