Taking Out A Tenant Loan Frequently Asked Questions

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A tenant loan represents a type of unsecured loan, offered to persons who rent out their place, either from the council or from a private landlord, or live with their parents. Persons can apply for a tenant loan no matter what their residential status is.

Given that it is an unsecured type of loan, financial institutions do not require that borrowers offer collateral. These loans are a good option for people who do not own assets but can afford to keep up with their loan payments. In the UK, borrowers can apply for a tenant loan and use the money to different purposes such as paying a holiday, surgery, or wedding ceremony, for house renovation, debt consolidation, or the purchase of a car.

If you think of obtaining a tenant loan, you can check with a number of financial institutions in the UK, including HFC Bank, First Direct, Lloyds TSB, the Nationwide Building Society, ING Direct UK, and many others. Some lenders offer insurance coverage to borrowers who are unable to keep up with repayments at all or on time. There are lending companies that feature tenant loans, and some of them consider all kinds of credit circumstances, such as defaults, arrears, and CCJs. Loans of this type are marketed as poor credit tenant loans, same day tenant loans, instant decision tenant loans, and tenant loans for bad credit. Private tenants, housing association tenants, and council tenants can apply for a tenant loan. Loans come with interest rates ranging from 7.7 to 18.3 percent.

Applying with financial companies that offer instant tenant loans may be the only choice for some, but these loans are featured with a higher interest rate. The loan has to be repaid in a period of six months to ten years, with the borrower paying in monthly installments. Borrowers who need a large sum of money may want to apply for a council tenant loan, offered with a lower rate of interest. Even persons with insufficient credit, no credit, or bad credit can apply for a loan.

Who is the likely applicant for a tenant loan? Financial institutions take into consideration your monthly expenses and income in order to decide how much you can reasonably afford to borrow. Salaried persons who are in service and get computerized pay slips can apply for a tenant loan. Unless living with parents, they should prove they have made reasonable rent payments and should have a mobile or telephone connection. Financial institutions also require evidence of recognition and residence. Loans are offered from 1,000 to 50,000 to persons who qualify, and the period of repayment is between 1 and 25 years.

Even if you do not qualify for a tenant loan, you have other options to consider. If you have a guarantor, you can take out a guarantor loan. You should be 21 to 65 years of age and employed full-time to qualify for a guarantor loan. In the United Kingdom, a person should be a homeowner, 23 to 67 years old, and with an income of over 800 per month in order to act as a guarantor.

Useful Guide to Citibank in Britain with detailed information on Royal Bank of Scotland.

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Topics: Mortgages | Comments Off

Tags: bank, banks in UK, Credit, debt, Finance, financial industry, loan, money, mortgage, Mortgages, tenant loans, top british banks, top uk banks

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MLA Style Citation:
Weeks, Chris "Taking Out A Tenant Loan Frequently Asked Questions." Taking Out A Tenant Loan Frequently Asked Questions. 2 Feb. 2012. uberarticles.com. 7 Apr 2012 <http://uberarticles.com/finance/mortgages/taking-out-a-tenant-loan-frequently-asked-questions/>.

APA Style Citation:
Weeks, C (2012, February 2). Taking Out A Tenant Loan Frequently Asked Questions. Retrieved April 7, 2012, from http://uberarticles.com/finance/mortgages/taking-out-a-tenant-loan-frequently-asked-questions/

Chicago Style Citation:
Weeks, Chris "Taking Out A Tenant Loan Frequently Asked Questions" uberarticles.com. http://uberarticles.com/finance/mortgages/taking-out-a-tenant-loan-frequently-asked-questions/

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