A non-homeowner can have easy access to loans in these days as lenders are more than wiling to make deal with such borrowers to combat competition in the loan market. In the UK, plenty of lenders offer unsecured loans for variety of purposes like wedding, holiday, paying medical or educational bills, debt consolidation. Unsecured Loans are given to homeowners as well. They can use the loan for home improvement works.
Unsecured Loans are source of risk free borrowings for all type of loan seekers. But tenant or non-homeowners are especially benefited as they do not own property and unsecured loans are approved without taking any security from borrowers. For homeowners, unsecured loans are fully risk free offers.
In the absence of collateral, lenders first of all see if the borrower has the ability to repay the loan in timely manner. Hence borrower’s income and employment documents become crucial in the loan approval. Usually lenders prefer borrowers having good credit history as they are less risky.
Under unsecured loans, a UK borrower can avail up to £25000 as per his or her income and repaying ability. The loan repaying duration ranges from 5 to 15 years. But a draw back of unsecured loans is its higher interest rate. Lenders have to cover for risks and therefore the rate is kept higher. So if your credit history is excellent or good, you are most likely to get unsecured loans at comparatively lower rate of interest.
Bad credit UK borrowers also are eligible for unsecured loans if they are able to prove sufficient repaying capability. But interest rate for then will be even higher.
In the UK, banks, financial companies and online lenders are source of unsecured loans. For fast approval and competitive rate loans, prefer applying to online lenders. And clear the loan installments regularly so that the loan enables in improving credit score.
Source:http://www.articlesbase.com/loans-articles/unsecured-loans-
uk-timely-risk-free-loan-for-your-circumstances-211613.html
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