Guarantor Loan Interest Rates in the UK
Since Guarantor Loans are designed for those with a bad credit history this means that the increased risk of default will equate to higher interest rates. FLM Loans who is the most popular guarantor loan lender promotes a 49.9% APR figure, but do note that this is a typical rate that would not include any broker fee. Guarantor Loans Online promotes a 53.8% APR figure that is a fixed rate. With the broker fee I would expect both of these rates to be much closer. These APR figures are of course on the high side, but these rates are still much cheaper than many bad credit unsecured loans. For example, Everyday Loans, Real Personal Finance and Welcome Finance when I previously checked each had an APR in the late 80s (just to note that Welcome Finance are no longer accepting applications). As you can see from that example, guarantor loans are much more competitive than their alternatives, but the problem is always in finding that guarantor that would be willing to back the loan application.
Tags: guarantor loans
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