Tenant Loans

What is a Tenant Loan?

Tenant loans are loans specially designed for tenants or people who do not own their own property and are likely to be living in a rented property. Tenants have been known to be discriminated against as a result of their absence of collateral when it comes to applying for loans.

Although these types of loans specifically have tenants in mind, tenant loans can be taken out by homeowners who simply prefer not put their property at risk. Tenant loans can also be taken out by self-employed workers who may not have the luxury of a steady income or proof of a regular income.

Tenant loans normally take the form of unsecured loans. This means that, as a loan applicant, you are not required to put up any collateral or asset, such as your home or your car, as security against the borrowed amount. In other words, if you should default on your tenant loan payment for whatever reason, you will not lose your home, car or other asset you have used as security against the loan.

You can get unsecured tenant loans for amounts as little as £1000 to anything up to £25,000 or more. Repayment periods can be anything from 6 months to 10 or more years.

Who can secure a Tenant Loan?

Most lenders will welcome tenant loan applications from all kinds of people including:

• Ministry of Defence Tenants such as soldiers and their families
• Council Tenants
• Housing Association Tenants
• Private Tenants
• Tenants living at home with parents
• Tenants living with friends or other family members

What can Tenant Loans be used for?

There is no restriction on how you spend your tenant loan. You can use the cash made available to you for any reason from home improvements, buying furniture or appliances, buying a car, taking a dream holiday, paying for a daughter’s lavish wedding or to pay for private education.

How to secure a Tenant Loan?

If you are able to meet the following criteria, your application for a tenant loan should be successful and easily approved:

• You must have a good credit history.
• You must be at least 18 years of age.
• You must have a full-time job and meet the lender’s minimum salary requirements. This will vary will lender to lender.
• You must have a current bank account and be able to arrange a monthly direct debit to make the repayments.
• You must prove that you have a permanent address which you have lived at for a period of a minimum of 12 months. You will be asked to prove this using utility bills or other documentation which carry your address on it.

However, even if you do not meet all the above criteria, it is still possible to secure tenant loans from certain types of lenders. Even if you have a poor credit history, CCJs, defaults or arrears, there will be some lenders out there who would be willing to consider your tenant loan application and lend you the amount you want.

In fact, some lenders have even made claim that they do not carry out credit checks. In these cases, however, it is likely that the interest rate that you will have to pay on your tenant loan will probably be higher than average, even exorbitant. Additionally, you may have stricter terms and conditions attached to your tenant loan.

Which lender can provide a Tenant Loan?

Many lenders, some associated with the major high street banks, offer Tenant Loans. Alternatively, you can use a specialist online lender such as Endsleigh

You can research the various types of lenders and the types of tenant loans on offer using the internet. There are even some online companies that will search the market to find you the best rate that is available for you. This is useful as you can compare and contrast the deals available thoroughly before making any financial decisions.

Many borrowers are turning to online lenders as they tend to provide fast decisions on loan approvals which means you can get hold of cash very quickly. Many borrowers are attracted to the fact that they can send in a loan application and find that the cash has been conveniently transferred into their bank account within days.

Of course, always be sure to use the services of reputable lenders. Read and make sure you understand the terms and conditions of the contract carefully before signing any legal document. Be realistic and be absolutely certain that you really do need to take out a tenant loan. Most importantly, make sure that you are able to comfortably afford to make the repayments every month before you agree to any tenant loan.