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Applying For Tenant Loans
By Andy Silk
So you're looking for a tenant loan but not quite sure what you need to do? Don't worry. It's a pretty simple process these days and if you do things in the right way, you could have the money in a few days!

The first thing that you should be aware of is that a tenant loan is exactly the same in principle as an unsecured loan or a personal loan. As you are a tenant, you don't have a mortgage and are therefore not classed as a homeowner. This is quite a crucial part of the equation as this means that you do not have a property on which to 'secure' the loan. In the event of someone defaulting on their loan, the lender would have the right to enforce a sale of the property in order to recoup their investment in you if the loan was secured.

With a tenant loan, this is not an issue as you cannot secure the loan on any property but don't think that this entitles you to borrow the money, not pay it back and get away without penalty. Neither the lender nor the courts would show much of a sense of humour if this was proved to be the case and in addition, your credit rating may be adversely affected for many years to come by taking such a course of action.

Moreover, the lender will be understandably choosy about who they lend money to with an unsecured loan. They would almost certainly run a credit check via one of the major support mechanisms such as Experian or Equifax to name but two. Whenever you apply for or take out credit, a record is created which helps to create your credit history over time. This record will show your payment history and any defaults, late payments and arrears together with any CCJ's (County Court Judgements) that you have accrued will appear. Any prospective new lender would research your credit file and make a judgement about the risk they may face in lending you money based on what they see. More problems generally means higher risks and the less likely you may be to find a lender willing to lend you the money or at the interest rate you were hoping for.

As you are applying for a

tenant loan or an unsecured personal loan, no property is involved so you will not need to show proof of ownership or have a valuation done on the property in order to complete the application process. This helps speed things up tremendously and allows the whole job to be completed in a few days compared with several weeks with a secured loan, however since you are not using your property as collateral, the lender will most likely impose a lower ceiling on the amount that they will be prepared to lend to you. Typically with tenant loans, this can be between £500 and £15,000 as opposed to £5,000 to £250,000 with a secured loan.

All you will need to do is to find a suitable online tenant loans broker and fill in the enquiry form on the site. Within a couple of minutes, you should get a response and you will probably get a decision in principle (subject to further checks, completion and submitting of a signed credit agreement and the provision of certain documents) almost immediately. The broker will send legally binding documents to you for you to complete and return during which time you have a few days to consider whether you are making the right decision in taking out the loan in the first place.

You will most likely be asked to supply proof of citizenship, proof of income and proof of residency to support your application. Providing that you supply these straight way, there is no real reason why your chosen lender cannot supply you with the finance you need within a few days.

It really is a simple process so if you are in need of a tenant loan, unsecured loan or personal loan, you know what to do. Happy hunting!

This article is free to distribute but please maintain links where they exist in the article. Thank you.

Andy Silk is FinanceGuru for FeelGoodLoans.co.uk, specialists in all types of loans and mortgages for UK homeowners , tenants and business owners.

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