What Are Tenant Loans

What Are Tenant Loans?
If you​ rent property,​ then you​ might think that it​ is​ hard to​ get hold of​ a​ good loan .​
However,​ this is​ simply not true anymore,​ and personal loans for tenants are increasingly popular .​
If you​ are a​ tenant and want more information on​ how to​ get a​ tenant loan,​ then this article might have some information that can help you.
What are tenant loans?
Tenant loans are often referred to​ as​ unsecured personal loans or​ non-homeowner loans .​
They are for people who do not have the​ collateral of​ property to​ secure against a​ loan amount .​
With house prices increasing,​ many people are renting property instead .​
Lenders have noticed this trend and are offering more and more competitive loan terms to​ people who do not own property.
Criteria for a​ tenant loan
Instead of​ securing the​ loan amount against your home,​ you​ need to​ prove to​ the​ lender that you​ are able to​ pay back the​ loan amount .​
This is​ done by reviewing your credit rating and employment details .​
If you​ have a​ good credit rating and have paid back all your debts on​ time before,​ and you​ are also in​ stable full-time employment,​ you​ should be able to​ get a​ loan .​
The amount you​ can borrow will obviously depend on​ your earnings and your credit history .​
The more you​ earn and the​ lower risk you​ are to​ the​ lender,​ the​ more you​ will be able to​ borrow .​
However,​ usually you​ can borrow between £500 and £10,​000 over a​ period of​ 1 to​ 7 years.
Costs of​ a​ tenant loan
Obviously,​ because the​ lender does not have the​ added security of​ property against the​ loan,​ interest rates are generally higher than for homeowner loans .​
However,​ if​ you​ shop around you​ can get rates that are very good,​ which will help to​ keep the​ amount of​ interest you​ pay to​ a​ reasonable amount .​
Somewhere in​ the​ region of​ 7-10% is​ a​ good figure to​ look for when trying to​ get a​ tenant loan.
Poor credit rating problems
If you​ have poor credit or​ are self-employed,​ then getting a​ tenant loan will be harder .​
However,​ it​ is​ not impossible to​ get a​ loan at​ a​ good rate,​ even if​ you​ have poor credit .​
As long as​ you​ can prove to​ the​ lender that you​ are not a​ huge risk,​ you​ should be successful .​
There are companies that specialise in​ tenant loans for people with poor credit,​ but the​ rates they charge are often higher .​
Your best bet is​ to​ shop around online to​ find a​ good deal.
Fast to​ get hold of
Although you​ might not be able to​ borrow as​ much as​ you​ would with a​ homeowner loan,​ tenant loans do have the​ advantage of​ being quick to​ get hold of .​
Many online companies allow you​ to​ fill in​ your details online,​ and because there is​ no need to​ value your property you​ can have the​ loan in​ a​ matter of​ days or​ even hours .​
If you​ rent property,​ then consider getting a​ homeowner loan to​ cover your financial needs.

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