Document background
A Loan Guarantor Agreement becomes necessary when a lender requires additional security beyond the borrower's own covenant. Under English and Welsh law, this document establishes a secondary obligation where the guarantor commits to fulfilling the borrower's loan obligations if they fail to do so. The agreement is particularly common in situations where the borrower's creditworthiness alone may not satisfy the lender's requirements. The document must comply with the Statute of Frauds 1677 and, where applicable, consumer protection legislation.
