Non-homeowner Loans - Do not Put a Property at Risks

By: Peter Taylor

Some people have nothing in the name of a valued property and others, who have a property, do not want to put it at risk. Well, both these types of the borrowers can opt for . In other words, tenants as well as homeowners can find the loan approval.

These are unsecured loans, meaning that the borrower gets the approval without providing anything as security to the lender. Clearly, tenants can have easier access to the loans. For a homeowner, the advantage is that he can keep the equity in home, intact.

It is only on the loan providers' faith that a borrower can find the approval. Usually, such a borrower must prove his or her monthly earnings through employment and bank statements. Your credit history also plays a role in making the lenders' mind.

You can borrow anywhere from ?1000 to ?25000. The loan carries short repayment duration of few weeks to 15 years, depending on the borrowed amount and your personal circumstances. You can use the loan for any purpose, such as home improvements, car purchase, tuition fee, wedding and debt consolidation.

However, non-homeowner loans are costly for the borrowers. In the absence of collateral, the lenders tend to charge interest at higher rates. So, borrow an amount carefully, keeping your repayment capability in mind.

If you have a blemished credit history, the loan comes with enhance rate of interest as you have few or multiple problems like late payments, payment defaults, arrears and CCJs. As you repay the loan installments in a timely manner, these loans are a good help in improving your credit rating in a short period.

Do not rush to the first non-homeowner loan offer you see on a website. Instead, first apply for rate quotes of as many such loan providers as you can. Make a comparison of the rates and additional charges. Ensure that you make timely repayments.

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