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Tenants who rent their home either from the council or from private landlords
often find it difficult to obtain loans, why is that?
Secured Loans certainly are not available to tenants as the very nature
of secured loans means that property is used as collateral (guarantee)
for the loan, so only unsecured loans are available to non-homeowners.
Loan companies often perceive tenants as a greater credit risk than home
owners. The main reason for this is that if the borrower defaults on the
loan there is no security or asset which can be used as leverage for repayment.
If the borrower defaults the lender can obtain a County Court Judgment
(CCJ) and in some circumstances have money taken directly from the borrowers
earnings via a court order. However, these types of steps are often a
last resort measures and often means the loan is unprofitable for the
lender.
All in all this generally means that non-homeowners find it more difficult
to obtain loans than homeowners. The interest rates which apply to Tenant
Loans are often higher. Higher fees may also be applicable in terms of
upfront set up fees, ongoing fees and redemption penalties.
So if you are a non-homeowner and you are looking for Tenant Loans then
you should shop around. Try your bank, shop online use the phone book.
In summary do your research. Lagoon Secured Loans does have access to
Tenant Loan providers, please contact us via our Secured
Loans Quotation form if you would like to find out more.
The content, advice and any recommendations given
on this page or any page of our website is given without legal responsibility.
For specific advice about your own personal circumstances you should seek
independent advice for example from your local citizens advice bureau,
a solicitor or an accountant.
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