Why was my guarantor declined?
ch-es-t-er@hotmail.co.uk (1 year ago)
I filled out my form and sent it off to you. I thought my guarantor would be suitable. Why haven't they been accepted? What happened?
FLM Loans (7 mths ago)
Before you go through the following list, check that your guarantor actually met our criteria by clicking here.
Main reasons for guarantors being declined by us:
Declined because they are not a UK homeowner
If your guarantor is a homeowner but we have declined them, telling you they're not, it means that we couldn't prove the homeownership our end. This can be easily rectified, normally by the caseworker asking for further proof such as a copy of the mortgage deeds, mortgage statement or a solicitors letter confirming they own the property. This also affects guarantors that have paid off their mortgage.
Declined because income not high enough
When our caseworkers receive an application, they will calculate if your Guarantor would be able to afford the repayments if you couldn't. They do this by checking that they have more than £150 of disposable income available per month (money left over after mortgage and any other bills have been paid).
Declined because poor credit rating
If there is anything on their credit file that shows a poor track record of repayments or credit usage (or a change of financial circumstances since they stood as guarantor for you before if a top up), then we may feel it would be irresponsible for us to make the situation worse by accepting them as a guarantor and burdening them with more financial responsibility.
Believe me, there is no one who hates rejecting loan applications more than us, but we have to make sure that applicants and guarantors do not take on responsibility that we know will put them in a difficult financial situation in the future.
If your guarantor has been declined, do not give up. The loan is still waiting for you, you just need to find someone else. Once you have found a guarantor you can add their details to your application online and then download, sign and upload or post your form back to us.
Main reasons for guarantors being declined by us:
Declined because they are not a UK homeowner
If your guarantor is a homeowner but we have declined them, telling you they're not, it means that we couldn't prove the homeownership our end. This can be easily rectified, normally by the caseworker asking for further proof such as a copy of the mortgage deeds, mortgage statement or a solicitors letter confirming they own the property. This also affects guarantors that have paid off their mortgage.
Declined because income not high enough
When our caseworkers receive an application, they will calculate if your Guarantor would be able to afford the repayments if you couldn't. They do this by checking that they have more than £150 of disposable income available per month (money left over after mortgage and any other bills have been paid).
Declined because poor credit rating
If there is anything on their credit file that shows a poor track record of repayments or credit usage (or a change of financial circumstances since they stood as guarantor for you before if a top up), then we may feel it would be irresponsible for us to make the situation worse by accepting them as a guarantor and burdening them with more financial responsibility.
Believe me, there is no one who hates rejecting loan applications more than us, but we have to make sure that applicants and guarantors do not take on responsibility that we know will put them in a difficult financial situation in the future.
If your guarantor has been declined, do not give up. The loan is still waiting for you, you just need to find someone else. Once you have found a guarantor you can add their details to your application online and then download, sign and upload or post your form back to us.