Are you renting or living with friends and family and in need of a loan? Loan Princess’s lending team specialise in matching tenants who want to borrow money with specialist finance companies offering loans to non-homeowners. We can even help borrowers who are 18 years old.
Many tenants worry that, because they don’t yet own their own home or that they live in council accommodation, the world of personal loans is closed to them. Ten or twenty years ago, with the exception of doorstep loan companies, that was the case. It was incredibly difficult for tenants to get loans.
Nowadays, it’s easier for tenants than ever however it’s important to be aware that there are fewer lenders in the market meaning that the interest rate you’ll pay on average is higher and the amount of money you’ll be able to borrow is lower.
In this article, Loan Princess looks at:
• what tenant loans are
• whether you can really get a loan if you’re renting
• whether you can really get a loan as a council tenant
• what choices are available for tenants with bad credit histories
• what type of protections the law offers you on short-term credit loans
• how to find the best deal on tenant loans through Loan Princess
What are tenant loans?
Tenant loans are designed for:
• potential borrowers who rent the property they live on,
• potential borrowers who are living at home with their parents,
• potential borrowers who are living with other family members,
• potential borrowers who are living in shared accommodation, or
• potential borrowers who are living with friends.
As with other types of loans, you agree the amount of money you want to borrow in advance with your lender, the length of time you want to pay the loan back over, and the amount you pay back every month to cover the amount you borrowed and the interest on top.
Because you’re not offering any security on your loan like your home and because you may have had credit problems in the past, tenant loan providers will look for extra assurances from you before they say “yes” to your application. Those assurances include:
• you’re in stable employment bringing in a minimal amount each month (some lenders might want £500 and others £1,000 – some lenders may count benefits as part of your income and others might not)
• how you spend the money you do make and how much is left at the end of every month
• the amount of debt you already have available (your limits) and how much of that debt you already use (the balance)
Tenant loans should only be used for emergency spending where, no matter your best efforts to save, a bill has come in that you weren’t expecting that you don’t have the cash to hand for right now. A lender will want to feel secure that you’re not using a tenant loan to pay off the interest on another loan you might have.
It’s possible for me to get a loan when I’m renting?
Absolutely, yes. LoanPrincess works with an extensive, reputable, and caring panel of lenders, many of which are very happy to work with people who don’t own their own property.
Can I get a loan as a council tenant?
Absolutely, yes. Our team work hand-in-hand with dozens of lenders who regularly extend credit to people living in council accommodation.
What’s available with tenant loans for bad credit?
Tenant loans for bad credit (also known as personal loans and instalment loans)
With a tenant loan, you can take out between £100 and £2,500 over a period of between 2 and 12 months. The loan is paid direct into the bank account you nominate and your repayments are made from exactly the same account.
You can apply for tenant payday loans offering between £50 and £1,000. What makes a payday loan different from a short-term loan is that you only make one repayment, either on your next payday or on a date you agree with your lender within 30 days of taking the loan out.
Guarantor loans offer you the ability to lend up to £15,000 over 5 years however they require you to find someone who will make repayments for you if you can’t pay back the loan. The person you nominate as your guarantor must have a superb credit rating and they must usually own their own home too.
Other types of loan
You may also borrow money against your car using a logbook loan or against valuables at a pawnbrokers.
Are tenant loans protected?
Some are protected but not all. At time of writing, guarantor loans, logbook loans, and pawnbroker loans have no additional legal protections for borrowers.
For short-term tenant loans and payday tenant loans, special rules protecting you are in place which cap:
• the amount of interest you have to pay (to 80p per day for every £100 borrowed)
• the maximum level of default charges if you miss a payment (£15)
• the total amount you pay back to a lender (no more in interest and in default fees than the amount of money you borrowed).
Tenant loans for bad credit customers through Loan Princess
In the UK, the Financial Conduct Authority lays down the law on what lenders can and can’t offer to borrowers. They’re also the body which tells payday lenders and short-term lenders about the additional rules they have to follow which we listed above.
The good news for tenants looking for loans with Loan Princess is that both Loan Princess and every lender we have on our panel are licenced by the Financial Conduct Authority.
When you apply via Loan Princess for your tenant loan, we’ll submit your details to all of the lenders who have indicated to us that they’re happy to work with tenants. Within seconds, they’ll come back with their offers and we’ll present the very cheapest and most flexible option available to you.
From then, it’s up to you. You’re always in control. If you want to proceed, read the lender’s terms and conditions and sign the online paperwork. You’ll then have a direct relationship with your lender.
Whether you say “yes” or “no” to the best offer we find you, there’s no charge to our service and everything we do is without obligation.
To start your application, please click here.