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Tenant Loans

There are numerous online lenders offering great rates to borrowers with a perfect credit history. But if you have tried that route make just one enquiry here and be considered for a wide range of unsecured lenders through our partner Express Finance.

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About Tenant Loans


What types of secured loan are available?

Capital repayment – each repayment pays backs some of the capital (amount borrowed) and interest. Providing all repayments are made on time the loan will be settled in full at the end of the term.

There are various types of secured loans available. For example:

Interest only – repayments are interest only. Providing all are made on time the balance at the end will be the same as it was at the start. Customers need an “exit route” (a source of money that will settle the loan in full).

Fixed rates – the interest rate charged is fixed for a number of years. When the fixed rate ends the customer pays the lenders standard variable rate.

Variable rates – the interest rate charged can vary up or down.

Tracker rates – the interest rate charged is set at a margin above the Bank of England’s base rate. For example if the base rate was 0.5% and the margin 3.5% the customer would pay 4%.


Why apply for a secured loan?

There are various reasons why clients may find a secured loan more attractive. The most common reason clients may want a secured loan to raise finance is if it provides a better alternative to re-mortgaging i.e. their mortgage has high early repayment charges or they are on a really good rate and don’t want to lose it.

Also lenders in this sector tend to be more flexible and many are prepared to consider non-standard applications such as complex income, adverse credit, older ages & unusual loan purposes. This is because, unlike unsecured loans, there is an asset being used as security.


How long should I borrow for?

Firstly, calculate the realistic amount that you are able to repay – don’t underestimate, as this could result in a longer repayment and higher interest! On the other hand, make sure you don’t overestimate as you don’t want to risk being unable to make the payments … In other words, careful planning is vital!


What can I use the secured loan for?

They are available for virtually all legal purposes. Home improvements, tax bills, new car to name a few.


What is the difference between fixed and variable rates?

Unlike fixed rate loans (where interest is fixed for the longevity of the loan), the rates of some secured loans are variable … this means they can alter depending on the UK base rates.

When planning to convert a fixed rate debt (eg. a standard personal loan) into a variable rate, always make sure you have complete confidence in your ability to afford the repayments in the event of a base rate increase. Rate fixes are available for certain types of secured loans, but this can sometimes only be for a limited period. Always make sure to check if penalties are included when you choose to pay off an existing debt early, as this is can be fairly common.


What does the rate depend on?

The interest rate depends on a few factors including your credit score (a), the size and length of your loan and the free equity (b) in your home. These factors are assessed in a variety of ways by your lender, for example the rate may be ideal for borrowers with good credit scores and limited equity but could prove to be uncompetitive for people with high equity and a poor credit score.

  1. Credit Score – There are a variety of factors that can influence your credit score … the most important are income, repayment failures, debts, County Court Judgements, arrears and bankruptcy.
  2. Free Equity – Free equity is calculated using the difference between property value and the outstanding balance owed. You will be offered a better rate if the difference between the two is higher.

Need more information?

Why choose Promise Money?

Loans from £5,000 to £2.5 million

Terms from 1-25 years

Largest lender panel in the UK

30+ years experience

Speak to a friendly adviser today

Plus

We’re the most direct lenders or we’ll give you £50

Your expert adviser has direct* access to more 2nd charge lenders than anyone else. Find a larger direct panel within 30 days of applying and we’ll give you £50.


We’re not a comparison site

We don’t quote you loans you clearly won’t qualify for and we don’t pass / sell your details to other brokers which can end up costing your more.


There are no upfront fees and or commitment

We don’t charge upfront fees and you can get our advice without paying a penny or being pressurised to go ahead.


Your credit score is not affected

We use a soft credit search to match you to suitable lenders. This doesn’t harm your credit score.


We give fast and accurate decisions

We pride ourselves on being fast, thorough and getting the right loan for you at the outset which saves you time overall.


Our process is easy and transparent

We explain everything we are doing and provide you with detailed updates so you can monitor every step of your application.


Brokers come to us for help, and so can you

You can get direct access to our specialists in mortgages, secured loans, commercial finance, short term lending and development funding.

Promise Money’s reputation is built on 30 years of experience, honesty, integrity, doing our very best for our customers – proud to offer old fashioned values with modern efficiency.

*Our “direct” pledge above means having an agency with a lender and the ability to advise on and submit loans direct to the lender – not via a third party or club.

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2 out of 3 borrowers get a lower rate than our representative example of a regulated secured loan below:

Representative example – £63,000 over 228 months at an APRC OF 6.1% and an annual interest rate of 5.39% (Fixed for five years – variable thereafter) would be £463.09 per month, total charge for credit is £42,584.52 which includes a £2,690 broker / processing fee. Total repayable £105,584.52.


THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME

REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR
PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.


APRC’s are variable on most loans. Fees apply. You can pay upfront and keep out of loan or add to loan and pay on completion only. Adding fees to loan will increase monthly payments, APRC and total repayable. Our fees cover mortgage references, consent to register a second charge, land registry searches, credit references, staff and variable costs. If a valuation is required this is paid direct to the valuer. Promise fee payable is linked to loan size from 1% to 10% maximum.

Written terms available on request.

Loans are subject to affordability status and available to UK residents aged 18 or over.

Opening Times

Monday to Thursday – 8:30am to 7:00pm
Friday – 8:30am to 6:00pm
Saturday – 9:00am to 1:00pm

CALLS ARE RECORDED FOR TRAINING AND MONITORING PURPOSES


Promise Money is a broker offering products which represent the whole of the specialist second mortgage market and is authorised and regulated by the Financial Conduct Authority – Number 681423.
Promise Money is a trading style of Promise Solutions Ltd. Registered in England, company number 04822774.
Registered Office: 2nd Floor, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG.