Most landlords have a legal right to give their tenants 2 months notice to get their properties back from their tenants.  This is just one reason why lenders look at tenants as higher risk borrowers than people that own their homes.  Private tenants move around more than homeowner’s.  Until recent years, it was fair for a lender to assume that if you owned a house you are likely to have equity in that house and therefore be worth something.

If you are a private tenant or council tenant with a lot of bad credit history in the form of  defaults and CCJ’s its unlikely that a high street bank will give you a loan.  However there are many door step lenders and private loan companies that will loan money to virtually anyone guaranteed.  The difference between them and the banks is vast though.   An unsecured loan with no credit check from a private lender from the back of the loot news paper can have very high fees and have APR rates of around 76%. 

 

These lenders have the advantage that they can release money very fast and do not have to take a lot of personal details to do a credit check.

Payday loans often have a very high rate or fee, which equates to a fee of £25 for every £100 you borrow.   It’s wise to avoid payday loans as they are so expensive.  People get trapped with them, and they have very high fees if you don’t pay on time or if you roll them on.