March 3, 2023
The sudden ascend in property prices has encouraged many people to prefer rented accommodations. It is simply because they cannot afford it. However, this does not provide them immunity from a financial crisis.
If they would have a home of their own, they can take care of unexpected emergencies by using it as an asset. For a renter, this provision would be inaccessible. Does it mean that they cannot borrow money? Of course, not!
The availability of non-homeowner guarantor loans via online mode has a different meaning. The borrower can bring a guarantor to apply for these loans. It will essentially enhance the possibility of getting loan approval.
The guarantor person should have a clean credit history with stable financial conditions. However, finding and convincing any person for this purpose is equally painstaking. Some lenders can ask you for this arrangement.
There is another way to borrow if you do not want to go through this complicated process. First, make sure if it would be beneficial for you or not. Obviously, you will not have to fulfil any guarantor requirement in this case. Satisfy your curiosity by continue reading this blog.
How can a Tenant Reap the Benefits of no Guarantor Loans?
If the lender accepts your application, these loans will let you experience compulsion-free borrowing. Such convenience is easy to access if you will apply with a direct lender. Their conditions are simple.
A tenant loan is a perfect example of the flexibility of direct lending. No guarantor loans are a further extension of it only. It can create endless opportunities for distressed borrowers who are dealing with many different issues simultaneously.
You must have been able to point out one or two perks of getting these loans. Get to know about more of them from the below points.
Exclusion of Asset Necessity
Since these loans represent financing for tenants, the lender has already omitted the requirement of assets. Borrowing is going to be less stressful as collateral is not involved. It can be an alternative way of managing extra cash for people who do not want to sacrifice their assets.
Here, you will get loans based on your financial stability. The lender will be keen to check if repayment will be easy for you. For this reason, your recent financial dealings will be crucial for this validation.
Alleviate the Guarantor Factor
It is evident from the name itself. There is no need to provide a guarantor. Here, the repayment will be your responsibility.
Your affordability is the crucial factor that will influence the lender’s decision. No hard assessment is necessary to evaluate it. A simple and less-complicated soft search will do the needful.
The lender will assess the status of the current bills. It is mandatory, as it will unveil whether you have the capacity to pay back the loan debt within the specified duration. Therefore, your application cannot go ahead without this confirmation.
Since the guarantor aspect is missing, the lender needs to focus on other ways of confirming loan payments. An affordability check is by far the best way for both the lender and the borrower. How?
The lender gets clarity on the actual financial scenario of the borrower. Moreover, the latter will not have to suffer any impact on the credit profile because of the checks.
Convenient Repayment Format
With these loans, you will get the opportunity to select from a variety of funds. It automatically makes way for easy repayment modules. Loan offers are adjustable in nature.
You can ask the lender for an offer that has a feasible duration for repayment. In addition, you can determine a suitable term by simply adjusting the loan money. Make sure that the offer is in sync with your financial conditions.
You will make a mistake by borrowing more than you can pay. It will unnecessarily complicate the loan repayment process. Finally, you will be unable to avoid debts from spiralling out of control.
Comfortable Application Mode
Visiting the bank multiple times would be tiring for a person running short of money and time. They can hold the hands of direct lenders to overcome this problem. How?
These loan providers have set up a unique arrangement wherein you can apply online. The best part is that the application form is accessible online. You just have to navigate through the website of the lender.
You can easily find clear instructions redirecting you to the application form. This mode of application is faster and simpler than the mainstream one. No need to do so much hard work.
You can go paperless with an online application. No hard copy of documents has any role to play in this process. The most important thing you would need is a laptop or a phone and stable internet connectivity.
Prevent making any mistakes in the application. It is because you will not be able to undo mistakes once the submission is complete. For this reason, review the application cautiously after you submit it online.
Wait-Free Decision and Money Transfer
Unlike a traditional lender, here you will not have to wait for a long to get a decision from the lender. The steps inside the process are quick. In fact, within a few minutes, you can have a message from the lender.
If you get a positive response from the lender, the money will reach your bank account as soon as possible. It means you need not have to collect the money from the bank. You can make the most of this speediness in their approach to eliminate the stress of unpaid bills.
The Bottom Line
Having no access to assets is not a drawback anymore. You can borrow money being a non-homeowner with or without a guarantor also. Both scenarios will have different repercussions in your life.
You are aware of the pros and cons of both types of borrowing. Now, you can decide which way would be the perfect one for you. Keep your financial condition and priorities in mind while making any decision. Try to shop around for the best loan proposal.
Do not deprive yourself of borrowing since you have no assets. This blog can prove you wrong. You must look at it carefully. It has all the information you would need.
Ellie Brown is a proud resident of the UK and love to be a content writer and editor for the last 9 years. Writing blogs and articles is her passion that one can explore at the top blogging platforms. Ellie holds a key position at Florafinance as the Senior Content Editor and Chief Loan Consultant, leading a team of more than 70 professionals. Ellie Brown covers the major aspects of the UK’s lending industry in her blogs and guides loan seekers who come at Florafinance to apply for a loan. She possesses the Post-Graduate degree in Finance and Investment.