It is hard for young people to get approved for a loan and in the UK mortgages are almost entirely out of the question until you are in your thirties. One option for young people that cannot get approved credit or people with a low credit rating is to apply for a Guarantor Loan which is a loan that can be signed for by someone else. The guarantor agrees to pay the loan off should the recipient be unable to. These loans can be used for any purpose and there are a number of companies that offer loans of this type.
The guarantor must have the means to pay off the loan and will often have to prove this before the loan is approved. This is a common type of loan for University students that need to pay their tuition fees or fund their living expenses. Often the parents or grandparents of the individual will act as guarantor.
