SimplyFinance - Tenant Loan

Secured Loan Advantages

2007-08-30T23:00:00Z

Secured loans offer an ideal way to borrow large amounts of money against an asset you already own. By far the most common kind of secure loan is the standard mortgage. In this case, the loan is usually secured against the home itself. If the borrower defaults on repayments, the lender has the right to take possession of the home. Another common kind of secured loan is the "further advance." The further advance is usually made against your home when you want to borrow extra on your mortgage.

One of the chief advantages of the secured loan is that they usually carry lower interest rates because there is less of a risk for the lender. Because of this, the lender may also be more flexible, and they may allow you to tailor the loan to your specific needs. You may have a say in setting the term of the loan and the amount of the repayments, which will allow you repay the loan comfortably and avoid financial pressure.

Secured loans are usually repaid between three and 25 years. However, as with mortgages, you may be penalised if you want to repay in full before the term of the loan ends. Check your lender’s policies on this and insist on more flexibility if you think you might be able to repay the loan early. Repaying early could save you a significant amount of money on interest repayments.

In many cases, secured loans are the only option. For example, the self employed and the unemployed often have difficulty obtaining loans, as do people with a poor credit rating. Banks will usually be willing to provide a secured loan in these cases. Secured loans often provide an opportunity to borrow significant amounts of money. For example, a homeowner with a sound credit history and a good regular income may be able to borrow up to 125 percent of the value of their home. This would be ideal for someone looking to buy a second home or, maybe, start up a business.

Secured loans are usually in the range of £5,000 to £75,000. Interest rates on offer from high street banks at the moment are usually around the 7-8 percent mark, although these will fluctuate as the Bank of England adjusts its interest rates. Secured loans also offer an opportunity to free up equity in your home. This is a very common method of releasing capital for people who may want to extend their home, place a deposit on a new home or simply buy that new car or go on a dream holiday.

Owning valuable assets opens up the valuable option of being able to apply for a secured loan, and to possibly borrow a significant amount of money for your particular needs. Unfortunately there are some drawbacks. The main disadvantage of obtaining a secured loan is that the bank can sell whatever it is secured against if you fail to keep up with repayments. The pressure of servicing a loan that is secured against a family home may not be for everyone. Because of this, obtaining such a loan should not be taken lightly. Only enter such an agreement if you are in a strong financial position with a secure and regular income.

Also, secured loans are rarely a source of quick cash. Because the amounts involved are often significant, the lender will usually do a thorough credit check, and and they'll examine the nature and condition of the collateral to make their own estimate of its worth. Therefore, obtaining the secured loan may be a drawn out process that takes a few weeks.

There are countless services and financial institutions offering assistance with obtaining a secured loan, and many services aimed solely at those with poor credit history. Secured loans are cheap and can provide a valuable option for many people. However, the risks can be high and the thought of losing their home puts many people off.

Not surprisingly, the majority of loans taken out in Britain are unsecured loans, where the lender trusts in the borrower’s ability to repay and does not require collateral. These are quick to obtain but are generally for smaller amounts to be repaid over shorter terms, and you can expect to pay higher interest rates.

This gives an overview of the advantages and drawbacks of secured loans. The right choice for you will depend on your needs and your personal circumstances so assess your situation carefully before making your decision.

If, after careful consideration, you've decided that a secured loan is the right option for you, let us help you find the best secured loan deal available. Take just a moment to fill out our simple questionnaire, and one of SimplyFinance's representatives will contact you shortly to introduce you to a lender that will work with you to find the best secured loan deal. It's quick, simple, and you're under no obligation to us or to the lender we introduce you to.

CLICK HERE TO APPLY FOR A SECURED LOAN TODAY!

Shopping for a Tenant Loan

2007-08-21T07:00:00Z

Before we get into shopping for a tenant loan, here's a quick definition of what a tenant loan is: a tenant loan is a type of loan offered to borrowers that do not have anything of significant value to offer as collateral on the loan. Due to the fact that there is no collateral involved, these borrowers often must deal with higher interest rates because of the higher amount of risk being assumed by their lenders. With that bit of background, here are some tips to help you expediently and cost-effectively shop for a tenant loan.

Things to Keep in Mind About Tenant Loan Shopping

When you're shopping for a tenant loan, know that you'll need to do a lot of research and hunting in order to find the lender that will give you the best tenant loan rate. Interest rates differ significantly from lender to lender, so be sure to do your homework, and find out who is offering the best rates.
A person who needs help finding the right tenant loan lender can employ the services of a tenant loan finder. This type of person or company earns its keep by helping you get tenant loans that have the most competitive rates in the industry. This will help shorten the tenant loan shopping process considerably.

Requirements for Finding the Best Rate

Though a tenant loan applicant will not need to submit any proof of security or collateral to his preferred lender, one factor influencing the interest rates offered is his credit history. A person who lacks a decent credit history is at a disadvantage because lenders look for your borrowing and repayment habits as represented by your credit history. Better terms are provided to people with good credit history.
Borrowers need to be able to prove that they receive a stable income (such as being a full-time employee).
A borrower's bank account should be able to accommodate a direct debt card facility.
You should have evidence that you have been living at your current residence for quite some time, such as having a landline contact number. This is required my many lenders so that they can see that you've got steady habits and you're not prone to jumping from one place to another.

Other Things to Keep in Mind

Most of the time, you will have to accept higher rates of interest on your repayments because a tenant loan is an unsecured form of personal loan. This means the lender is accepting a higher level of risk of nonpayment than a secured loan borrower would.
The borrower does not have to worry about losing his/her property because their property is not put up as collateral (and most tenant loan borrowers lack sizable assets to put up as collateral anyway). However, a borrower who does not fulfill his repayment obligations may have to answer to legal action initiated by the lender. This is why searching for low interest rates is quite crucial.
There is less paperwork and a shorter waiting period involved in tenant loans.
It is possible to go online to apply for your tenant loan, since many lenders operate from websites now.
In the UK, you can take out a tenant loan amounting to 50,000 British pounds maximum. One factor that will dictate the amount you can borrow is your monthly income. Usually, the loan amount should be equivalent to 70-75% of what you earn per year.
The interest rate you have to shoulder per month may be influenced by the repayment period granted to you or that you requested from your lender. Repayment periods may last from one year to 25 years maximum.
You may be able to improve your credit history by taking out a tenant loan. In order to improve your credit score, you need to make payments on your tenant loan strictly according to schedule, so you can prove to the lender that you are a low risk borrower.
A person who succeeds at repaying his/her whole tenant loan amount may eventually qualify for other types and amounts of loans with lower interest rates.
People often resort to tenant loans when they are desperate for an influx of funds with no collateral. If you eventually qualify for other types of loans, you may be able to get better terms that will further improve your financial condition.

To sum up, if you've got little to no personal property of high value, such as a car or a house, you may qualify for a tenant loan. The downside to a tenant loan is that you will most likely be forced to endure paying higher interest due to the fact that you're a high-risk borrower in the eyes of your lender.

If you think a tenant loan is right for you, take a moment to fill out this short questionnaire, and one of SimplyFinance's representatives will contact you shortly to introduce you to a tenant loan lender. This tenant loan lender will search to find you the best available tenant loan for your particular financial goals and needs.

Tenant Loan Basics

2007-08-20T07:00:00Z

Definition

A tenant loan is an unsecured personal loan. It's called unsecured because the tenant loan applicant does not need to supply any collateral or security to receive his/her personal loan. These loans are appropriate for people who lack sizable assets that can be employed as security or collateral. People who have bad credit fall into this category.

Tenant Loan Requirements

Tenant loans are quite common in the UK, though there are now US lenders who also offer tenant loans as well. In the UK, tenant loans are sought after by people who rent their homes, specifically those who are private tenants, housing association tenants, or council tenants. People who still live with their parents may also apply for tenant loans. In other words, to qualify for a tenant loan, one is usually required to be a non-homeowner.

But not all non-homeowners can qualify for a tenant loan. An additional aspect of tenant loan basics is that you need to prove you have a stable source of regular income so that you can afford to repay your tenant loan.

Advantages of Tenant Loans

One common occurrence when it comes to tenant loans is that many lenders refuse to offer them to people who lack assets to put up as collateral because these borrowers are considered high-risk. Luckily, because of the demand for unsecured tenant loans, more and more lenders are becoming more lenient. Another plus is that, due to the high demand for tenant loans, interest rates for this type of loan have decreased significantly.

Because of these changes in the tenant loan market, people who have less income may be able to afford tenant loans nowadays. You may even be able to negotiate with tenant loan lenders for longer repayment periods. Tenant loans do not cost as much as other forms of unsecured personal loans such as credit cards or payday loans.

Tenant loans may also be given to people with bad credit to help them rebuild their credit rating. These borrowers with bad credit may have to deal with higher interest rates due to the increased risk assumed by the lender.

A variation of the tenant loan is the any-purpose tenant loan. As its name suggests, you can take out this type of loan to meet any kind of need, whether for immediate or future purposes. The growing competition for tenant loan borrowers has made lenders more accommodating towards tenant loan applicants, so you can probably find a tenant loan that will fit your repayment budget.

Tenant Loan Finders

An additional service that has grown out of the tenant loan industry is the tenant loan finder business. These tenant loan specialists do not offer tenant loans themselves; rather, they will help you secure a tenant loan whose interest rates and terms match your particular circumstances. These specialists generally help borrowers who have been turned down by traditional lenders, such as banks. In some cases, a fee will be charged for this service, but it's usually worth the added expense when you think about how much time you are saving by not having to research all the lenders on your own. In the end, you will simply have to read the data that the tenant loan finder digs up for you.

Paying for Your Tenant Loan

Since a tenant loan is an unsecured personal loan, the lender cannot take possession of your property because you did not put up any assets as security. However, if you fail to repay your tenant loan, the tenant loan provider has the right to initiate legal action against you. To prevent this from happening, you should compute how much you can afford to pay monthly, inform your lender at the start of the application process, and stick to your repayment schedule.

In the UK, the repayment of a tenant loan lasts from 1 to 25 years. Like other forms of unsecured personal loans, you have to be wary about overborrowing. Though the interest rates are higher for tenant loans than other types of loans, the borrower has the consolation of knowing his only risk is the danger of non-payment of the loan.

By being diligent about repaying your tenant loan, you will build your personal credit history and your credit score. If you are able to do so, you will be qualified for different types of loans, perhaps with lower interest rates, in the future.

If you'd like help finding a tenant loan, let SimplyFinance lend you a hand. As a tenant loan finder service, we will consider all of the information you provide in our simple form, and we'll find you a lender that can offer you the best tenant loan rate possible. Why wait? The money you need could be yours sooner than you think!