Since the onset of the current state of the world's financial climate peoples need for financial based products has increased and demand has increased in more niche markets, for example, products such as bill payer insurance saw massive increases in the demand for their product.

This is a direct result of a change in the way people see their security and the confidence they have in the financial markets.

Any such example is guarantor loans [http://www.guarantorloansonline.co.uk]. Although increase for this type of loan product was not driven directly by the credit crunch, the results of the crash meant an increasing number of people found obtaining credit difficult.

The main reason for this was the tightening of the credit markets and the restrictions that were put in place stopping inter-bank lending, and creating further unrest.

This brought about a niche in the market for people who had a poor credit history or for people who had not borrowed previously. This niche was spotted and the guarantor loan was born.

This revolutionary loan product answered the call for continued lending from the consumer markets as well as giving the lender a safeguard in the form of a homeowner guarantor.

As a borrower you are then able to guarantee the loan repayments by using a homeowner guarantor, providing this person has a good credit rating and can afford the potential loan payments should the borrower be unable to repay the loan.

The guarantor should consider the potential impact of this on their credit score or to their income as paying for the loan would become their responsibility.

If the lender reports to credit reference agencies a guarantor loan could help to repair the borrower's credit file long term providing they can keep up the loan repayments.

Because of the way in which this type of loan product has been constructed and it's timely entrance the the UK unsecured loan market it is taking centre stage in many guarnator loans companies' portfolios.