Articles
Non homeowner loans
– creating a source of finance for the homeless.
Because of the preference that loan providers show for the
homeowners, you have started having
feelings of jealousy against them. Your experience with
lenders shows that there are not much takers for you
as a non homeowner. However, we feel that you are still
half informed. Though, loan providers’ preference
for homeowners is well known, it isn’t
that they do not cater to the borrowers other than homeowners.
So, you as non-homeowners too can get good deals in
non homeowner loans.
Aimed specifically at the people who do not have a landed
property of their own, non homeowner loans
are the only hope of this category of people. Tenants,
both council tenants and tenants with private lenders,
can get their financial needs covered through the non
homeowner loan. The category also includes
people who have been living with their parents in their
parent house.
Non homeowner loan is generally offered
as an unsecured personal loan. However,
when borrowers agree to pledge certain other assets
as collateral, then the loan is converted into a secured
loan.
The best part of the non homeowner loan is that there is not much to lose. You haven’t
pledged anything or the asset pledged is not as important
as a home in homeowner loan. Non homeowner
loans do not haunt borrowers with the repossession fears,
which is so characteristic of the homeowner
loans.
This means that the lenders are at a risk of losing
the money lent as non homeowner loan. While
the money can be recovered by suing the borrower for
the non payment, the process is often long drawn and
costs dearly to the loan providers too.
It is because of this risk that loan providers desire
the borrowers to have a good credit history. Borrowers
who have a good credit history imply that they are less
drawn towards non payment. Those with a bad credit history
may find a large majority of loan providers running
away from them. Since, it is the credit history that
acts as a guarantee for the borrower in the absence
of collateral, loan providers will find it difficult
to ignore bad credit history.
This does not put a full stop on the chances of the
bad credit borrowers to get non homeowner loans.
Certain loan providers do have deals for the borrowers
with a lower credit score, i.e. bad credit history.
Borrowers wishing to take up non homeowner
loans need to fulfil the following essential
requirements:
- The borrower must be in full time employment.
- Computerised pay slips are used for paying the
borrower.
- Bank account must have a direct debit facility.
- The proofs of identification and residence must
be ready.
- The borrower must have been regular in making rent
payments.
- The borrower must have a home telephone line or
a mobile (if it is a mobile, a copy of the agreement
must be produced).
The non homeowner loan can be used
for as many purposes as a homeowner loan. These are consolidating debts, purchasing cars etc.
However, you need to understand that the amount available
under non homeowner loan is not at
par with the homeowner loans. The lower
amount may be the result of increased risk. In money
terms, the amount under homeowner loans can range from £1,000 to £50,000 over a
period of 1 to 25 years.
You would surely not be complaining after learning
about non homeowner loans. Though the
terms under non homeowner loans are
not as attractive as homeowner loans, borrowers cannot
help because of the vast differences in the circumstances
of the homeowners and non homeowners.
Also, there are not much finance options for non
homeowners other than to take non homeowner
loans.
Summary
Non homeowner loans are aimed specifically
at the people who do not have a landed property of their
own. Though the terms under non homeowner loans are not as attractive as homeowner loans, borrowers
cannot help because of the vast differences in the circumstances
of the homeowners and non homeowners. The following article has taken up this and several
other issues related to non homeowner loans.
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