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Non Homeowner Loans – Creating A Source Of Finance For The Homeless
By: Steve C Clark
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.
About the Author:
Steve Clark can tell you how to look better, live better and breathe better by
giving you tips to improve your finances. He writes on loans. His ideas can help
you rejuvenate your money. To find Secured homeowner loans, bad credit homeowner
loans,online homeowner loans, non homeowner loans visit http://www.easyhomeownerloans.co.uk
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