If you live in the UK and are trying to get hold of a loan without being a home owner you will probably be finding harder than you thought to get the credit you need. This is even more so in the current economic climate where banks are tightening up their lending requirements for people who don’t have a property to use as collateral.
The reason being of course that if you put down your home the lender has an insurance policy in case you can’t keep up with your repayments. The negative aspect of this for homeowners if that they will lose their home if they fail in paying back their debts. It does mean however that they can get a loan whenever they want it and will get the best rates available.
As non homeowners we are going to have to dig a little deeper to find what we need, and the search usually starts in the Internet where there are companies specializing in giving out the type of loan you are looking for. Its called the tenant loan and is allows you to get cash in the form of an unsecured loan, created specifically for those that rent their living space.
These loans aren’t particularly hard to get and they are usually even suitable for people with bad credit. You will have to be in employment and be able to show the lender that you have the means to repay the entire amount, as they are taking a bigger risk than usual they will want to be assured that your income is large enough for you to comfortably meet the repayments.
You should bare in mind that these unsecured tenant loans are going to be more expensive than those given to the homeowner to make up for the large risk taken on by the lender. Its for this reason that you should only use these products for taking out money when you really need it, rather than because you fancy buying a new wardrobe full of clothes.