Use your savings to secure a preferential interest rate at 6.17% APR*
Deposit funds into a savings account and borrow up to the same amount at 6.17% APR.
With savings held as security, this loan offers a practical and controlled way to borrow:
- Savings are held as security against the loan
- May help you access credit more easily
- Ideal for making a large purchase without using your savings
- A simple way to lend to a relative without managing repayments yourself
- Can help a child or family member build their credit rating
Guarantor loan secured against savings
This guarantor loan is backed by savings - either your own or your guarantor’s. The loan is secured against funds held in a savings account for the duration of the loan.
To apply for the Guarantor Loan you can apply as an existing member or a new member below, simply apply for the loan amount you would you like up to the amount of your savings. Once you have done this, please contact us to let us know you wish to proceed with the Guarantor Loan option.
If you have savings of £1,000 you could borrow £1,000 over 12 months with an interest rate of 6.17%. Monthly repayments of £86.07, total amount repayable £1,032.72
If you have savings of £5,000 you could borrow £5,000 over 36 months with an interest rate of 6.17%. Monthly repayments of £152.11, total amount repayable £5,475.62
| Eligibility | You must be 18 years of age or older and live or work in the DL, DH, HG, NE, SR, TS or YO postcode area |
| Amount and interest | Borrow up to the value of your savings at 6.17% APR. Minimum loan available is £1,000. |
| Savings | A savings balance must remain throughout the term of the loan of at least 100% of the outstanding loan balance. |
| Guarantor options | You can use your own savings to act as guarantor for the loan or another member can act as guarantor. If another member is acting as guarantor they must hold a savings balance at all times of at least 100% of your outstanding loan balance. They also agree that their savings can be transferred to make loan repayments if you default on your loan agreement. |
| Security | The loan is secured against your savings. Your savings balance must be equal to or greater than your outstanding loan balance throughout the loan term |
| Risk | Your savings may be at risk if the Borrower fails to make their required loan repayments |
| Term | Maximum loan term is 60 months |
| Application | To apply for the Guarantor Loan you can apply as an existing member or a new member below, simply apply for the loan amount you would you like up to the amount of your savings. Once you have done this, please contact us to let us know you wish to proceed with the Guarantor Loan option. |
| Same day payment | Sign your loan agreement before 3 pm and have access to the funds the same day |
| Repayments | Loans can be repaid weekly, fortnightly, or monthly depending on which one suits you best |
| Save as you Borrow | We encourage you to continue saving throughout the loan term; either 20% of the loan payment or £20, whichever is the lower amount |
| Early repayments | There are no fees for early repayments |
| Criteria | Applications are subject to our usual lending criteria |
| Documentation for your application | To help protect our members from document fraud, we now use secure Open Banking access as the primary way to review the last three months of bank transactions for loan applications. This access is temporary and read-only. We do not have permanent access to your account and cannot make payments or changes. If your bank or building society does not support Open Banking, please contact us and we will advise on alternative documentation. |
| Representative Examples | If you have savings of £1,000 you could borrow £1,000 over 12 months with an interest rate of 6.17%. Monthly repayments of £86.07, total amount repayable £1,032.72. If you have savings of £5,000 you could borrow £5,000 over 36 months with an interest rate of 6.17%. Monthly repayments of £152.11, total amount repayable £5,475.62 |
Taking out a loan is a big decision. If there is anything that you would like to speak to us about with regards to our loans or the application process, get in touch. We will always be happy to help.
