Tenant Loans
Also Read - Personal Loans : Unsecured Loans
- Are you after a personal loan but aren't a homeowner?
- Do you still live at home and are after finance?
- Have you found applying for a tenant loan difficult, because have a problem credit?
- Or has a previous application been turned down?
Whether you are a council tenant, housing association tenant or pay rent to a private landlord, you are known as a Tenant.
Because you do not own your own property, you will not be able to use it as security against a loan, this means you will be unable to obtain a secured loan. The fact that you do not own your own property means that it cannot be repossessed should you not be able to keep up repayments. The type of finance you can apply for is a ‘tenant loan’ – or ‘unsecured loan’.
Unfortunately because of the lack of security (your own property) lenders do tend to charge higher interest rates on tenant and unsecured loans. If you have frequently moved address you could find that you have more difficulty in finding a lender who is willing to give you a loan. Also having credit problems can make it harder to get finance but at Adverse Monkey we aim to find a tenant loan that matches your criteria and circumstances.
It is not all bad news a tenant loan can be processed quicker purely because you do not own a house that has to be valued before any loan can be granted.
Tenant Loan Repayments
The repayments on a tenant loan are calculated using several different
criteria and factors.
Along with the amount lent the lenders charge interest on the loan, this
is shown as the loans APR. With the capital and the APR, lenders also
charge administration fees and arrangement charges.
Taking in all the fees, charges and with the credit rating of the
borrower, the lender calculates the overall cost of the tenant loan then
divides this by the loans term. This is then presented to you, the
borrower, as a monthly repayment amount.
Loan Repayment Difficulties
If you're having repayment difficulties always contact the lender
immediately to explain. Having difficulties with repayments is nothing
to be ashamed of, there may have been changes to personal circumstances
that were not expected. These changes may have affected your ability to
pay, they may even be temporary like a redundancy.
Debt can quickly mount up and become daunting. This debt is easier to
control and manage if early action is taken and advice sought out. Do
not panic or ignore the problem and together with the lender an
agreement could be reached that takes account of any currant budgetary
conditions and still makes repayments on any outstanding arrears.
Contacting the lender and agreeing to a plan to pay off debt may assist
with your credit rating.
