There are a good number of words particularly in the world of finance that earth in the United States, they then rise in popularity and then quickly make their way over here to the UK. “Subprime” is a good example of a word that in the past several years has become very popular in the United States and it has now more recently become a popular term here in Britain. One such popular word looming from the United States that is not so popular over here is the term “surety”! I have heard it a few times recently and so wanted to cover its meaning here today at Guarantor Loans UK, as you will find that it has a rather relevant meaning with the theme of this site.

A surety is a financial term that has exactly the same meaning as guarantor does. And so, a guarantor or a surety is the name given to any such party that would assume responsibility for a borrowers debt. If there is any missed payment (default) on this agreed loan then the surety would step in to cover the owed funds missed by the borrower. The borrower’s track record alone may look too risky and so this surety would help to support a borrowers loan application! So, a guarantor loan and a surety loan has the same definition, but the surety term is relatively unknown here in the UK. It does have significant usage over in the United States though, but that is more to do with the “surety bond” term.

Just what is the meaning of a surety bond? Well, a surety bond is a contract that would include three parties who are the obligee, the principal and the surety. It is the surety who assures the obligee that the principal can perform the given task; you can probably see the similarities there with the surety being the simple “backing” that supports any such contract. Finally, another financial term that has the same meaning as “guarantor” and as “surety” that has not been covered here on the blog as yet is “loan guarantee”! You’re not really likely to hear these other terms being used much here in the UK, but I thought it would be a good idea to cover the basic ins and outs.

(common misspellings/related: bad credit surety bond, guarantee loan, guarantee loans, sureties, what is a surety bond)