Most UK lenders only allow one guarantor on a personal loan. If you have been researching guarantor loans and have come across the idea of having multiple co-signers, that concept is more common in the US market than in the UK.
This article explains what a guarantor actually is, why UK lenders generally limit you to one, and what your options are if finding a single suitable guarantor is proving difficult.
This article is for general information only. It is not financial advice and does not apply to your personal circumstances. If you are unsure which borrowing option is right for you, speaking to a regulated financial adviser may help.
So, can you have more than one guarantor on a UK loan?
In the UK consumer loan market, the answer is almost always no. The vast majority of lenders who offer guarantor loans only accept one named guarantor per application.
We have not been able to verify any UK lenders who currently accept two guarantors as standard practice, and this should be treated as non-standard at best. The safest way to find out a lender's policy is to check directly with them before applying, because submitting a full application may trigger a hard credit search on both the borrower and the guarantor.
What does a guarantor actually do?
A guarantor is a person who agrees, in writing, to repay a loan if the main borrower cannot or does not make payments.
This is a legal obligation. The guarantor is not just vouching for the borrower's character. If the borrower misses payments, the lender can ask the guarantor to pay instead, and can pursue the guarantor for any outstanding balance.
Because the responsibility is real and can be significant, most lenders carry out their own affordability and credit checks on the guarantor. The FCA requires lenders to assess whether the guarantor can genuinely afford to cover the loan if called upon (see FCA Consumer Credit sourcebook, CONC 5.2: https://www.fca.org.uk/firms/consumer-credit/responsible-lending).
A simple way to think about it: the guarantor is the lender's safety net. Having two safety nets does not necessarily make the loan safer from the lender's point of view, because the legal and administrative process of enforcing repayment from two separate individuals is more complicated.
Is a guarantor the same as a co-borrower?
These are two different arrangements, and it is worth being clear on the difference.
A co-borrower (sometimes called a joint borrower) is named on the loan from the start. Both people are equally responsible for repaying it from day one. Joint mortgages work this way.
A guarantor is a backup. They are only called upon if the main borrower fails to pay. The guarantor does not benefit from the loan, but they carry real financial risk.
Some lenders offer joint personal loans, which effectively give you two borrowers rather than a borrower plus a guarantor. If the person you had in mind as a second guarantor is willing to be a joint borrower instead, that could be an option worth exploring.
Why do UK lenders limit guarantors to one?
There are a few practical reasons.
Affordability assessment. The lender must check that a guarantor can afford to repay the loan if needed. Running that check on two people, and deciding which takes priority if both are called upon, adds complexity to the process.
Legal enforceability. If there are two guarantors, the loan agreement must be precise about how liability is divided. Is each guarantor responsible for the whole amount, or just half? Different structures have different legal consequences, and most standard consumer loan products are not built to handle this.
Product design. Most guarantor loan products in the UK are built around a simple two-party structure: one borrower, one guarantor. Lenders offering these products often use standardised agreements that do not accommodate a second guarantor.
What are the alternatives if you cannot find a suitable guarantor?
If the person you had in mind does not pass the lender's checks, or is not willing to take on the responsibility, a few other options may be worth considering.
A credit union. Credit unions are member-owned financial co-operatives. They often lend to people who have a thin or imperfect credit history, and they are regulated by the FCA. MoneyHelper has a tool to help you find a credit union near you: https://www.moneyhelper.org.uk/en/everyday-money/credit/credit-unions.
A smaller loan amount. Some lenders may offer an unsecured personal loan for a smaller sum without requiring a guarantor at all. Borrowing only what you genuinely need can open up more options.
A secured loan. A secured loan uses an asset (usually a property) as security instead of a guarantor. This carries its own risks: the asset can be repossessed if payments are not kept up. It is a different type of commitment, and worth understanding fully before proceeding.
Building your credit file first. If there is no immediate urgency, taking time to strengthen your credit record may mean you can borrow without a guarantor at a later point. MoneyHelper has guidance on the steps involved: https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-improve-your-credit-score.
Before committing to any one product, it can help to use an eligibility checker, as many lenders offer a soft-search tool that lets you see your likelihood of acceptance without affecting your credit file.
FAQ
Can you have two guarantors on a UK loan? Almost all UK lenders only accept one guarantor per loan. We have not been able to verify any lenders who currently offer this as a standard option. It is worth checking directly with the lender before applying, as their policy varies and applying without checking could trigger a hard credit search.
What exactly does a guarantor agree to do? A guarantor agrees to repay the loan if the main borrower does not. This is a legal obligation, not just a character reference. If repayments are missed, the lender can pursue the guarantor for the outstanding amount, which could affect the guarantor's credit file. If you believe a lender has acted unfairly in how they have pursued a guarantor, the Financial Ombudsman Service (https://www.financial-ombudsman.org.uk) may be able to help.
Is a guarantor the same as a co-borrower or co-signer? No. A co-borrower is jointly named on the loan and shares responsibility from the start. A guarantor is a backup, they only become liable if the main borrower fails to pay. UK lenders use both arrangements, but they are not the same thing.
What if I cannot find a suitable guarantor? A few options are worth exploring: a credit union may lend to people with thinner credit files; a secured loan uses an asset instead of a person as security; or a smaller loan amount may be available without a guarantor at all. Comparing options before applying can help.
Does being a guarantor affect your credit score? Agreeing to be a guarantor may appear on your credit file, depending on the lender. If the borrower misses payments and you are called upon to pay, that activity can affect your own credit record. A lender must carry out affordability and credit checks on the guarantor before approving the loan.
Can a guarantor be removed from a loan? This depends on the lender's terms. Some lenders allow a guarantor to be released once the borrower has demonstrated a consistent repayment record. Others do not allow removal at all until the loan is fully repaid. Checking the terms before signing is important.
Related reading
For a full explanation of how guarantor loans work, including who qualifies and how lenders assess both the borrower and the guarantor, see our parent guide: Guarantor loans.
Sources
- FCA (Financial Conduct Authority), responsible lending and affordability assessment requirements for consumer credit lenders under CONC 5.2: https://www.fca.org.uk/firms/consumer-credit/responsible-lending.
- MoneyHelper, credit union finder: https://www.moneyhelper.org.uk/en/everyday-money/credit/credit-unions.
- MoneyHelper, guidance on improving your credit file: https://www.moneyhelper.org.uk/en/everyday-money/credit/how-to-improve-your-credit-score.
- Can you have two guarantors on a UK loan?
Almost all UK lenders only accept one guarantor per loan. Some specialist lenders may consider two, but this is uncommon. It is worth checking directly with the lender before applying, as their policy varies and applying without checking could trigger a hard credit search.
- What exactly does a guarantor agree to do?
A guarantor agrees to repay the loan if the main borrower does not. This is a legal obligation, not just a character reference. If repayments are missed, the lender can chase the guarantor for the outstanding amount, which could affect the guarantor's credit file.
- Is a guarantor the same as a co-borrower or co-signer?
No. A co-borrower is jointly named on the loan and shares responsibility from the start. A guarantor is a backup — they only become liable if the main borrower fails to pay. UK lenders use both arrangements, but they are not the same thing.
- What if I cannot find a suitable guarantor?
A few options are worth exploring: a credit union may lend to people with thinner credit files; a secured loan uses an asset instead of a person as security; or a smaller loan amount may be available without a guarantor at all. Comparing options before applying can help.
- Does being a guarantor affect your credit score?
Agreeing to be a guarantor may appear on your credit file, depending on the lender. If the borrower misses payments and you are called upon to pay, that activity can affect your own credit record. A lender must carry out affordability and credit checks on the guarantor before approving the loan.
- Can a guarantor be removed from a loan?
This depends on the lender's terms. Some lenders allow a guarantor to be released once the borrower has demonstrated a consistent repayment record. Others do not allow removal at all until the loan is fully repaid. Checking the terms before signing is important.