Guarantor loans and mortgages are one way to help someone borrow money if they are having trouble getting approved by lenders. This could be a young person with little or no credit history or a bad credit history. There are risks for both the borrower and the guarantor, so you should know all the facts before signing a guarantor agreement.
What does it mean to stand behind a loan?
Helping someone else get credit, like a loan or mortgage, is what it means to be a guarantor. As a guarantor, you promise to pay back someone else's loan or mortgage if they can't. It's smart only to agree to be someone's guarantor if you know them well. Parents often act as guarantors for their children to help them get that first step on the property ladder.
Anyone can act as a guarantor.
A guarantor can be almost anyone. It's usually a parent or spouse (as long as you have separate bank accounts), but it could also be a friend or relative. But it would help if you only were a guarantor for someone you trust and whose payments you are willing and able to make.
To be a guarantor, you must be over 21, have a good credit history, and have stable finances. If you own your own home, this will give your application more weight.
How would your relationship change if you had to pay their bills?
To be a guarantor for a rental property, you must back up the tenant. If the tenant can't keep up with their responsibilities under the tenancy agreement, you (as the guarantor) will have to pay for things like late rent or damage to the property.
Will it cost me money to be a guarantor? 
If the borrower can't make their payments, you will have to pay them instead. This can cost you money. If you can't keep up with the payments, your home could be removed.
Will I have to be a guarantor for their mortgage for as long as they have it?
You don't have to be a guarantor for the whole mortgage term if you don't want to (e.g., 30 years). Most agreements will let the borrower remortgage and get rid of you as a guarantor once they have built up enough equity.
Can I stop being the person who backs up a loan?
You can't stop being a guarantor once you've signed a loan agreement and the loan has been paid back. The lender won't let you out of the contract because your credit history, job situation, and other factors all played a role in the loan being approved.
If I have bad credit, can I still be a guarantor?
Lenders aren't likely to accept guarantors with bad credit, so if you have a low credit score, you won't be able to be a guarantor.
How does the fact that I'm a guarantor affect my credit score?
The lender will check your credit before you become a guarantor. But this is usually just a "soft" credit check. Soft credit checks don't appear on your credit report and won't hurt your credit score.
Will my role as a guarantor make it harder for me to get a mortgage? 
Helping a family member or close friend build credit can hurt your chances of getting a mortgage in the future. Mortgage lenders look at your income and expenses, including your debts. Because you may have to pay off a friend or family member's debt as a guarantor, this type of borrowing can hurt your ability to pay off your debts. You might not be able to get another mortgage because of it.
What is a check from a guarantor?
Before giving a guarantor loan, lenders do several checks to see if the borrower or guarantor will be able to pay back the loan. Credit checks look at your credit history and tell the lender your credit score. This tells the lender how well you have paid back other loans and credit. So, as was said above, a guarantor with good credit will give your application more weight. They also check how much you can afford to pay back every month.
Compare loans and mortgages with a guarantor.
If someone has asked you to be their guarantor, it's a good idea to tell them to compare their options with different lenders to ensure they're getting a good deal. If you have to pay back the loan, you want to ensure that it doesn't cost you more than it could have.
