Unsecured loans for tenants - UK advice

As a tenant can I get an unsecured loan?

Yes, the only type of loan that you can't get as a tenant is a secured loan because you need a property to secure the loan.

Are there any downsides to taking out an unsecured loan?

Generally speaking, you will pay a higher rate of interest with an unsecured loan than you would with a secured loan. This is because you are viewed as a higher risk by lenders, due to the fact that you have no capital.

Is there any way round this?

Well, there are other ways of reducing costs. Obviously, look for the lowest APR (Annual Percentage Rate) available for the amount of money you want to borrow, but also look out for additional incentives such as repayment holidays where some lenders will actually make repayments for you, usually for the first month.

Another good way of paying less for your unsecured loan is to get the loan through your bank. Some banks will let you offset your loan against any savings you have with them. So, for example, if you borrow £5,000 but have £1,000 in your savings account or current account, you only pay interest on the £4,000 difference.

 

 

 

 

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