A tenant loan is another term for an unsecured personal loan. They are aimed specifically at people who do not own any property and is a way for those people who rent their room from the council, hidden landlords or live with parents to apply for a loan.
A tenant loan is 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. They can be taken out and used for any purpose, including new car, debt consolidation, home improvement or luxury holiday. It is ready from a range of banks, building societies and other financial institutions. You can borrow from around £1,000 to £25,000 and select to repay the tenant loan over a duration of 1 to 25 years.
Basic Requirements
The basic requirements for those wishing to apply for a tenant loan are:
You are in full time employment.
You are paid by computerised pay slips.
Your bank catalogue accepts a Direct Debit facility.
You have proof of identification and residence - commonly utility bills.
You have made satisfactory rent payments (excluding "living with parents")
You have a home telephone line (or a movable provided a copy of the bargain is produced)
Disadvantages
The disadvantages of a tenant loan 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. Any way 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 leading to determined plan and allocation your monthly repayments to make sure you can afford to take out a 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 room and address details, and three years employment history. If you have moved address or job recently you may have more issue getting a loan. Any way there are loan clubs that will offer you a tenant 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.
Repossessed Mobile Homes:What is a Tenant Loan?
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