There was even a good availability of loans for tenants that is for those who do not actually own their own home but rent it from a housing association, a local council or a private individual.
There have always been firms such as Provident and Shop A Cheque who granted unsecured loans to tenants and homeowners alike, but at very very high rates of interest
Welcome Finance used to advance both secured and unsecured loans to both tenants and homeowners, and although their interest rates were high, it was a useful product which did allow tenants to borrow the money they needed. Unfortunately after many years of profitable trading, Welcome closed their doors, and this left tenants out on a limb with very little options of obtaining a loan.This is a most unfortunate situation., and one that could not be fore seen.
For tenants requiring a loan the situation is bleak, and they are being pushed to obtain loans from a pay day loan firm, which is a sign of the times and these firms are charging 1800% interest or there a bouts which is extortionate. This figure is no exaggeration.
Even worse is the fact that tenants are being forced to borrow money from illegal money lenders as they have no other hope of obtaining a loan. Money lenders have always thrived where people are at their poorest and most vulnerable, but now more people than ever use their services.
Homeowners are in a better position as if they have equity in their property they can obtain a secured loan based on the equity of their property, and if they have a good credit rating these secured homeowner loans are available from about 9% APR.
Homeowner who have bad credit can obtain bad credit secured loans at 50% to 60% LTV and at interest rates of over 20%. This is still fairly good.
Learn more about homeowner loans then visit Champion Finance’s site to obtain free information about secured loans
