Tenant loans are the personal loans that you can avail to rent a property; as being unsecured debts, the borrowers doesn’t need to be a home owner or to pledge another asset as the security. Which is the best tenant loan? Simply, it is debt that is offered at the lowest interest rate for the preferable repayment period. The most of lending agencies advertise for the least APR but you may get the loan at higher APR depending upon your credibility.
What is the Best APR for Loans for Tenants in the UK?
APR goes high as your credit score comes down. The required loan amount is a crucial factor for deciding the interest rate because some direct lenders have their own borrowing tiers formula to fix the loan rates. The repayment period is another factor that affects the loan rate; longer repayment period reduces the interest rate but you often pay more amount as interest. To increase the chances of getting the better deal for required tenant loan, get yourself registered at electoral roll with your address.
What Else Affects Tenant Loan Prospects?
Being registered at electoral roll helps the direct lenders confirm your location; it increases the chances of loan request approval. Can you get a joint long-term loan associating another tenant? Yes, you can avail this type of debt provided both of you pass the credibility criteria fixed by particular lender. How old do you need to get a tenant loan? You must be at least 18 years old; there is an upper age limit also that differs depending on lending agency but 70 years old tenant can get the tenant loan from any agency. What does the APR mean? The much publicized term stands for annual percentage rate – APR denoting the interest that you pay on total loan value; in other terms, it is the effective loan cost. Can the tenant debt be used for consolidating existing loans? Yes, it can be used because this loan type comes without any usage limitation. Can you get tenant loan to rent the council house? Yes, the numbers of direct lending agencies offer tenant loans in the UK for renting a council house.
Growing Numbers of Tenants Rely on Tenant Loan:
The total rent paid by tenants in the UK was about £50bn in 2017; it is double of the figure a decade ago. The total property mortgage debt in the UK for 2017 was £57.4bn, while the total rent bill was £51.6bn. The younger generation born between 1977 and 1995 is spending the largest part of their monthly income on rental cost. Even some tenants pay more than half of salary to pay home rent while the poor wages revision has been a topic of discussion in all the circles. So, the wages are not increasing but the rents are increasing continuously; it means tenants need extra financial help to meet out the additional finance requirements; here, comes the role of direct lending agency.
Alternatives To Manage Small Amount Short Term Renting Loan:
The small amount debts are often more expensive than the larger loans; if you need small amount debt, you must focus on reducing the cost of managing the finance need. If you need to borrow less than £1,000, you must explore other alternatives of direct lenders. The unsecured personal loan, credit
card, friends / family and overdraft are the most suitable alternatives that can save you from borrowing from direct lending agency. Each option has its own pros and cons and affects the credit ranking in different ways.
According to ‘English Housing Survey’ report appeared online in January 2017, 46% of 25 to 34 years old people live in rental homes, while this figure was 27% in 2006-07. The significant difference in both the figures highlights the importance of tenant loans. As considerably high numbers of people in the UK have poor credit score, so, the leading direct lenders offer tenant loans for bad credit no guarantor also but at different terms and conditions.