Tenant Loans Explained

If you do not own your own property it can be a challenge to find a loan provider who will be willing to lend you money especially if you have a poor credit history or are looking to borrow a larger amount. Many loan providers do prefer to lend to homeowners as they are able to secure the loan on the borrower's property to be reclaimed if repayments are not made. However, many loan companies do specialise in providing tenant loans to those living in privately rented, council or housing association accommodation.

Companies offering tenant loans are usually willing to consider most circumstances and will often be able to lend to the majority of employed UK resident over the age of 18, regardless of the purpose of the loan (with the obvious exception of using the loaned money for anything illegal!).

The lending criteria of different tenant loan providers varies, with some specialising in providing loans for those with CCJs and a history of missing repayments, whereas others will specialise in providing loans for those with little or no credit history. The interest rate charged on the loan amount is usually determined by the borrower?s personal circumstance.

Most loan providers offer a repayment calculator on their website which will estimate monthly repayments based on the total loan amount and loan term you enter. It is important to remember that these calculations are only estimates as they are likely to be based on the lender's typical APR and actual repayments will depend on your specific interest rate. Loan providers are also likely to offer optional loan protection insurance which will cover loan repayments if you are unable to due to sickness or unemployment.