|
A Tenant Loans is a loan granted to a person who rents their home. As the tenant does not own the property they live in, they are ineligible for a secured loan.
The main disadvantage is that without being able to offer security, lenders will restrict the amount they are prepared to lend and will charge higher rates of interest. If you own a property, you can borrow £100,000 or more subject to the value of the equity you own in the property, whereas tenant loans usually only allow you to borrow up to £15,000 - £20,000 and you will need a good credit history.
When applying for a tenant loan you will need to show the lender evidence of where you have been working and living for the last three years. It will be difficult to get a loan if you have moved address or job recently.
Loans articles
More Loans FAQ's
|
