What is a Tenant Loan?
By John
Mussi
Ever wondered what is a Tenant Loan? A tenant loan
is another term for an unsecured personal loan. Tenant
loans are aimed specifically at people who do not own
any property. Tenant loans are a way for those people
who rent their accommodation from the council, private
landlords or live with parents to apply for a loan.
Tenant loans are unsecured because you do not need
to own a property to use as collateral on the loan.
Unsecured loans are a good loan option for people who
are financially stable and able to keep up loan repayments,
and who may or may not own their own property.
Tenant loans can be taken out and used for any purpose,
including new car, debt consolidation, home improvement
or luxury holiday.
Tenant loans are available from a range of banks, building
societies and other financial institutions. You can
borrow from around £1,000 to £50,000 and
choose to repay the tenant loan over a period of 1 to
25 years.
The basic requirements for those wishing to apply for
tenant loans are:
You are in full time employment.
You are paid by computerised pay slips.
Your bank account accepts a Direct Debit facility.
You have proof of identification and residence - normally
utility bills. You have made satisfactory rent payments
(excluding "living with parents")
You have a home telephone line (or a mobile provided
a copy of the agreement is produced)
The disadvantages of tenant loans is that you will
not be able to get such low interest rates or as much
collateral as those who put up their home as security
have access to. Rather than borrowing up to £100,000
which you can if you own a property, you will only be
able to borrow up to £25,000. However there are
benefits – the loan will not be tied to your home
so if you do have problems repaying, your home will
not be directly at risk.
It is important to carefully plan and budget your monthly
repayments to make sure you can afford to take out a
tenant loan. Tenant loan lenders will be less relaxed
about missed repayments because they do not have your
property as security. Remember that although the loan
lender cannot repossess your property, they can still
take you to court.
When applying for a tenant loan you will need to have
three years accommodation and address details, and three
years employment history. If you have moved address
or job recently you may have more trouble getting a
loan.
However there are loan companies that will offer you
a loan whatever your situation, so make sure you are
honest when making your application and you will be
able to get a loan that suits you and your needs.
About The Author
John Mussi is the founder of Direct Online Loans who
help UK homeowners find the best available loans via
the www.directonlineloans.co.uk
website.
Article Source: www.ezinearticles.com |
