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.
No 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 havent anything or pledged the asset pledged is not as important as a home in homeowner loan. No 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 and drawn 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, ie bad credit history.
Borrowers wishing to take up non-homeowner loans need to fulfill the following essential requirements:
» The borrower must be in full time employment.
» Computerized 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 and so on. 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 1000 to 50,000 over a period of 1 to 25 years.
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