The Unavailability Of Loans Forces Some To Money Lenders.

Before the credit crunch there was availabilty of loans for both tenants and homeowners. Homeowners are still still in the fortunate position that if they have enough equity on their property they can obtain a homeowner loan otherwise very commonly known as a secured loan . If a homeowner has a good credit rating these secured homeowner loans have an interest rate starting at about 9% APR. As long as a homeowner has 50% equity in his property no matter how bad the credit rating is he can be considered for a bad credit loan . Tenants are in a very different position. Many people need to borrow money now more than ever in the past to tide them over this finacially stressful period, and now there’s no loan lenders apart from Provident prepared to grant unsecured loans to non homeowners. The largest loan amount for a first time loan borrower with Provident is only £ 100, and there is not much that you can do with £ 100 nowadays . Welcome Finance used to advance loans to tenants, but since they ceased trading tenants have no place to turn except for the pay day loan companies with interest rates at well over 1000% to almost 2000%. As a last reort some of them are forced to borrow from illegal money lenders Whose trade is thriving in these hard times when loans are really not available to tenants.