UK Tenant Loans Explained

A tenant loan, to explain it quite simply, is a loan made by a person in the United Kingdom who doesn’t own any property. If they are leasing from a housing association or council or if they are renting from private landlords or just simply living with parents, then they are renters or better known as tenants, thus one form of loan they can attain is a tenant loan. These types of loans are normally unsecured and tend to have a higher interest rate than those of secured loans.  

Tenant loans explained further is more like a multipurpose loan that are offered by credit card companies. Although unlike credit card, there is no rotating credit line. These tenant loans are similar to other forms of installment loans but they have no property being used as collateral. So these kinds of loans have more risk than other conventional loans. But usually, they do have lower interest rates than that of credit cards, so some people apply for these tenant loans for that particular purpose, paying off a credit card debt. 

Even if a person has bad credit history or CCJs (County Court Judgments), there are still companies or banks and lenders that specialize in tenant loans. There are, however, criteria to qualify for the tenant loan.  

The first and foremost requirement for tenant loans is that the borrower should be at least 18 years old and a legal resident of the United Kingdom.  They should also be employed with a minimum of £1,000 gross monthly income, in either a private company or government company for at least 3 months. The borrower should also have a bank account that is active. 

Once a person is qualified for a tenant loan, as explained here, they can receive or opt to apply for a loan in the range of £500 with the highest at £10,000.00.  The individual can use the amount achieved from the tenant loans for any purpose. From paying off a credit card debt, to buying a new car, paying matriculation for the children, buying medicine or for medical treatments, or going to that cruise that you’ve been planning for.   

There are only few restrictions being put by the lender or bank on the loan or money though they would still ask for the primary use of the money.  There would be an agreement between the lender and borrower as it is still a loan.  In this agreement, the following important information is written. 

The interest rate would be stipulated, followed by the time of repayment.  It also has to have the amount of repayment and any other clause applied for in the loan. 

Applying for a tenant loan as explained above is fairly easy. You just need to find a good lender and always, always read the fine print.