Why was my guarantor declined? - FLM Loans Answer Centre

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Why was my guarantor declined?

by ch-es-t-er@hotmail.co.uk on Sat Apr 17th, 2010 11:30 am

I filled out my form and sent it off to you. I thought my guarantor would be suitable. What happened?

by Roxane Tizzard last updated 62 days 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 U.K 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. This 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 £400 of disposable income available per month (money left over after mortgage and any other creditors have been paid).

Declined because poor credit rating
If there is anything on their credit file that shows a poor track record of 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 downloading, signing and re-uploading / faxing / posting your new forms back to us.

Comments

by ch-es-t-er@hotmail.co.uk 126 days ago.

What if you dont have another guarantor, whats the best way to solve the problem ?

by Jon Newman 126 days ago.

Our customer's top choices for guarantor’s

1) Family members/Friends - Our family and friends would love to help us out but they might not have that kind of money lying around. Acting as guarantor for you is the next best thing. They're helping you get the money you need but with the same risk.

2) Bosses and work colleges - People you work with are perfect, they know how much you earn. Naturally you're going to be wary about sharing your business with people at your work, but there's nothing strange about needing a guarantor, especially during a credit crunch.

3) Landlords - If someone trusts you to live in their property, they will trust you to pay back a loan.

Once you have thought about who to ask, get yourself ready before speaking with them. Some things for you to do.

- Write down all of your income and expenses so you can show your guarantor you can afford to pay the loan back each month, meaning they wont have to.

- Make sure you understand everything about the loan. Your guarantor will want to know what their role involves. If you don’t know the answer, it will be on this forum.

by magi.g@btinternet.com 126 days ago.

Why was guarantor declined, he has a uk mortgage which he has never missed a payment! he has great credit history too and has a great wage coming in so why was he declined?? is this just a scam to get our bank details????

Margaret Gilfillan.

by Roxane Tizzard 126 days ago.

We don’t like turning guarantors down, it's our business to pay out money. Without guarantors we cant do this.

There are two easy checks we do to accept a guarantor. Are they a homeowner and are they older than 22 but younger than 71. The only other thing we need to make sure is that they have a good credit history. We do this by running a simple credit check on them.

Margaret, I can assure you that this is not a scam, if your guarantor has been declined there must be something on their credit that they don’t know about. If you find a new guarantor we can help pay out your loan.

by mylucky_vca2006@yahoo.com.ph 126 days ago.

I wonder why my guarantor did not meet your lending criteria he is my employer, how come that he did not meet your lending criteria?

by Jon Newman 126 days ago.

Hi mylucky, sorry to hear your guarantor was turned down. I would love to be able to tell you, but it all depends. It'll either be because of their credit history, because they're not a homeowner, because they didn't have enough income coming in or because they're already a guarantor for another FLM loan. Either way, I'm afraid you're going to find someone else to stand for you. Make sure you check them against our criteria before you choose someone.

by matthewyke@yahoo.co.uk 126 days ago.

None of my friends and family are homeowners,my landlord says she would agree but her voting card is still at my address? what can i do ?

by Jon Newman 126 days ago.

Hey Matthew, it won’t matter that your guarantor is still on the electoral roll at your place. We prove they own the home by checking something we call the 'Land registry' and looking for mortgage repayments from their account. Nothing to worry about.

by c-ubee 119 days ago.

My guarantor is a duel home owner with my father, the mortgage payments come from her account, why was she declined?

by Roxane Tizzard 119 days ago.

To be able to accept your guarantor we need to see that they are the owner or part owner of a property. We use a system that can check this automatically. If we cannot see them as the owner of the property they would have been declinded.

If you can provide evidence such as a mortgage statement or title deeds with their name on clearly visible we could still be able to accept them.

by c1981 119 days ago.

my guarantor was declined because you have said he doesnt earn more than £800 a month, he earns a minimum £1200 a month after tax before any overtime and has shown me his payslips, where do you get your information?

by Jon Newman 119 days ago.

The information is taken from what is paid into his account. If this is incorrect, it's not an issue. All he has to do is send in a couple of wage slips, proving his income.

by David 115 days ago.

What prove does the guarantor need to send to prove that they own their house

by Jon Newman 115 days ago.

If needed, they can send in a copy of their purchase deeds or a letter from the bank, solicitor, mortgage company that dealt with the purchase.

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