Home & Mortgage
When you in a need for money, you can simply approach a lender and get a loan. It is easier to get a loan against the security of a property. The property is usually a house. Getting a secured loan for a homeowner is very easy. If you are a homeowner and want a loan, all you need to do is to offer your house as a security and you will get a loan at a low rate of interest.
The problem arises when you do not own a house. In such a situation, you need to take out a tenant loan. Tenant loans are specifically designed for those who live as tenants or those who live with their parents. Tenant loans are basically unsecured loans and do not require borrowers to offer their property as a security. Tenant loans can be obtained from banks, financial lenders and private lenders. You can obtain any amount of tenant loan. Tenant loans can be obtained for a number of purposes. A need for money may arise at any time. You may need it for home improvement, to buy a car, to finance a holiday trip, or to consolidate your debt.
Since a tenant loan does not require a property, there is no immunity for the lender against the loss that he would incur if the borrower defaults in the repayment of the loan. Because of this reason, the lender relies on the borrowers credit score. A bad credit history will result in a high rate of interest on a tenant loan.
There are a few disadvantages of tenant loans. The rate of interest on a tenant loan is higher that the rate on a homeowners loan. You cannot obtain a large amount of loan. If you wish to avail a large loan amount, then you will have to go for a homeowners loan. A tenant loan is a short term loan as a result of which, the amount of monthly installments cannot be adjusted to your needs. The advantage that a tenant loan has over a homeowners loan is that the borrowers property is not at the risk of repossession.
About the Author
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting UK-loan-market as a finance specialist.
For more information please visit: http://www.uk-loan-market.co.uk
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