Unsecured Loans - Are They The Same As Tenant Loans?
Are you a tenant who needs to raise some finance? If you rent your home, it can sometimes be difficult to find a lender willing to help. They apply many more restrictions to tenant loans than to secured loans, but have you ever wondered why?
If you’re a tenant then you don’t own your own home. You won’t have a mortgage either and that means that you won’t have a property to secure a loan against. With secured loans and mortgages, the lender can pretty much guarantee that they can get their investment back in the event of a default on your repayments. In this situation and under the terms and conditions of the credit agreement, they could force a resale of your property and recoup the money that they lent from the proceeds of the sale. The mortgage would be repaid first with the secured loan being repaid second.
With a tenant loan however, the lender will find it much more difficult to recoup their money in the event of a default in the repayments. As you do not own your own home, the loan has not been secured against any property but the lender can still go to the Courts to force you to repay. If the Court finds against you, they could impose a CCJ (County Court Judgement) that will sit on your credit record for any prospective lender to view in the future.
The lender could also employ a team of bailiffs to impound some of your goods and chattels that they believe when sold, will fetch a resale value of equal to the amount that you need to repay. This is a costly exercise for the lender and difficult to recoup their money in this way. It serves more as a punishment to the borrower for not repaying the loan than to be a sure-fire method of recouping their money. If you cannot secure your loan against your home, then you need to take out an unsecured loan. Therefore, all tenant loans are unsecured loans. Whilst this may restrict the number of lenders and lending products that you could choose from to support your application, it doesn’t necessarily mean that you will not find a lender to help you to raise the finance that you need. If you are set on borrowing the money for things like a new car, motorbike or caravan, a luxury holiday, a wedding or simply to consolidate your existing credit into one more manageable monthly repayment, then all you need to do is to go to an online unsecured loans broker. Complete the enquiry form, then sit back and relax. You should receive a call from a loan consultant in only a few minutes, to help you with your application and to provide you with a decision in principle. They will send a credit agreement out in the post to you for you to complete and return leading hopefully to a positive result and you should get the money you need within a couple of weeks. Unsecured loans are a great way of raising the money you need for just about any personal use. Good hunting!
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About the Author
Andy Silk is FinanceGuru for FeelGoodLoans.co.uk, specialists in unsecured loans for tenants, loans and mortgages for UK homeowners and business owners.
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