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There are different types of loans that people and businesses can get in the United Kingdom. But having a guarantor is one of the most common things you need to get a loan. A guarantor agrees to take care of the loan if the person who took it does not pay it back. But is it possible to get a loan without guarantor in UK? This article will examine this question and discuss the various lenders that offer loans without any guarantor. However, first, understand what guarantor loans are.
Non-homeowner guarantor loans are personal loans that are granted to individuals who do not own a property but have a guarantor who is willing to co-sign the loan agreement. The guarantor is usually a family member, friend, or colleague who agrees to repay the loan if the borrower defaults on their payments. Since non-homeowners may have a harder time getting approved for a loan due to lack of collateral, having a guarantor can increase the chances of approval. The guarantor acts as a security for the lender and reduces the risk associated with lending money to someone who does not own a property. Non-homeowner guarantor loans usually have higher interest rates than regular loans because they are considered to be riskier. The loan amount and repayment terms may vary depending on the lender and the borrower's credit score. It is important for both the borrower and the guarantor to fully understand the terms of the loan before signing any agreement.
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