Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Tenant_loans-_tenants_only_resort

VIEWS: 6 PAGES: 2

									Title:
Tenant loans- tenants only resort


Word Count:
714


Summary:
When tenants face financial needs, who do they look at for financial support? It is UK tenant loan that offers
the necessary finance for the tenants at these times. This article deals with the what and how of tenant loans.
It has also described the advantages and disadvantages that tenants generally face while drawing tenant
loans.



Keywords:
Personal loan UK Homeowner personal loan secured personal loans ,tenant loans



Article Body:
As if the problems of tenancies were not enough that loan providers too have started treating tenants in a
step motherly fashion. Such is the indifference of loan providers that it appears as though loan opportunities
are all shut for the tenants. Since they do not have a home of their own, tenants are often eyed with
suspicion. What if the tenant runs away after borrowing? Legal procedure sure offers a relief but it is often
too protracted.


However, not all loan providers view tenants in a similar fashion. It is these lenders who offer loans to
tenant. Tenants are the people who do not have a home of their own. People who have been living till date in
their parents’ home too count as tenants, unless parents are ready to allow the usage of their home as
collateral. A loan to serve the tenants is known as tenant loan in the UK.


UK tenant loan is basically an unsecured loan where the borrower does not have to offer any collateral to the
loan provider. Take any secured loan and the clause of collateral will always come along. Whether it is the
home of the borrower or any other asset which serves as a collateral, there is always the fear of the collateral
being taken away permanently by the loan provider. How else do you think the loan provider will recover
his loan? UK tenant loan is free of any such fears as there is no collateral.


One more advantage of tenant loan, which extends to unsecured loans in general, is that they are relatively
faster in getting approved. With no collateral to value, the loan providers can save significant time during
approval. Compare this with a secured loan against home and we find that the valuation of home takes as
much time as the other processes taken together. Thus, if you are taking a tenant loan in the UK, you can
hope to receive loan proceeds much faster than your counterpart who has taken a secured loan.
Compared to the earlier times, the number of lenders with loans for tenants in the UK has increased. The
lenders have realised that by taking a moderate risk they can increase their customer base.


UK tenant loans are awarded for sums ranging up to ₤25000. Tenants thus may not qualify for a
large amount as in a secured loan. This constitutes one of the tactics to reduce the risk involved in the
process of offering tenant loans. Tenant loans can not be used for tasks which have a larger cash
requirement. Making small improvements in home and debt consolidation are the purposes which can best
be undertaken through a tenant loan.


Additionally, the interest rate on the UK tenant loan will be very high. As most of us know that rate of
interest is heavily dependant on the amount of risk involved in a particular loan deal. We discussed in the
very beginning of the low credibility of tenants. This implies that the tenants expose loan providers to
greater risk. Thus, tenants have to pay a higher rate of interest. The borrowers can escape interest rate
fluctuations by using the several options that come on interest. Rate locks, capped rate, discounted rate etc
form some of the interest options to lessen the bitterness of high interest rates.


Having a bad credit history will not be accepted with ease in UK tenant loans. Credit history is the only
instrument through which borrowers can trust borrowers. When credit history is tarnished, they will find it
very difficult to make the lending decision. Credit deformities may have been ignored had there been
sufficient collateral. Does this mean that tenants with bad credit history have to return empty-handed? They
would have to return thus had it not been for a few loan providers who are ready to lend with this much risk.


Tenants must be good researchers for finding good deals in UK tenant loans. There is no shortage of loan
providers who try to take benefit of the problem of the tenants. They will often increase unreasonably the
rate of interest or will include too many of the hidden charges. Borrowers who are able to surpass these
lenders are the ones who find the best deals in UK tenant loans.




Credit Dispute Letter

								
To top