Unsecured Loans - How Long Will it Take to Get My Money?

By: Andy Silk

If you're a tenant and you need to raise cash fast, you're in luck. Unsecured loans for tenants and tenant loans are often one of the fastest ways to raise cash. They're pretty simple to arrange too!

As a tenant, you're renting your home, right? No mortgage to worry about each month. One of the downsides however, of renting your home appears when you're looking to raise some finance. At this point, your options may be significantly curtailed because you don't have a property on which to secure a loan. That effectively means that 1st and 2nd charge loans, or mortgages and secured loans as they are better known, are not possible as they require some collateral. If you default on this type of loan, the lender will be able to get their money back by forcing a repossession of the property and a subsequent sale. With this extra security, the lender is generally much happier to lend comparatively larger sums of money; between ?5,000 to ?250,000 or more.

Unsecured loans for tenants and tenant loans are different in this respect. There is no property or other collateral on which to secure the loan, giving rise to the name for this type of loan - unsecured. The lender has to swallow much more of the risk in this kind of deal as they cannot force a sale of collateral that doesn't exist in the first place.

To mitigate this risk, the lender will run through a number of questions related to the financial circumstances of the potential borrower during the application process. They will want to know about your income. How much you earn, how regular it is and how secure your employment is, as this will often provide the means to the monthly repayments. They will want to know about your outgoings to establish that once all your commitments are covered, you still have enough money left over each month to cover the loan repayments.

They will likely look at your record of residency. They will want to know if you have been in the same house for a long period of time. If you have, it means two things, firstly that you are less likely to abscond with the lender's money and secondly, that they can check to see if anyone registered to that address has defaulted on any loans during that time of residency. This brings us on to probably the most important check of all - the credit search. Whenever you take out finance of any kind, you create a record on your credit file. You also create another record when you make a repayment or not as the case may be. This record is searchable by the lender (with your permission although they are very unlikely to accept your application for a loan without it) and enables them to have a very clear window into the way that you run your finances. No default means a good risk and the greater the chance that they will allow you to borrow all or close to the full amount and at a favourable interest rate.

Since there is no property involved, there will not be any valuation required. This means that the time required to complete the transaction is comparatively very short. The whole thing can be done in a few days, rather than a few weeks and you can have the money to spend on whatever personal use you have in mind. The lender or finance broker will send you a written credit agreement for you to complete, sign and return and from their receipt of this, you could have the money in less than a week. Simple. Unsecured loans for tenants and tenant loans can be arranged for between ?500 and ?15,000 as long as there is no business use involved (where different rules may apply). So what are you waiting for? Get onto a finance broker today and make that application and start enjoying the nicer things in life.

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