UK Credit increases its maximum loan size
UK Credit, one of the leading guarantor lenders in the country, has increased their maximum loan size. Announced last month and pushed live in the beginning of July, the Norwich-based lender increased their homeowner product from £7,500 to £10,000 and tenant product from £4,000 to £6,000.
The table below shows the minimum and maximum terms for all loan sizes:
Representative Example: The Representative APR is 39.9% APR (fixed) so if you borrow £4,000 over 4 years at a rate of 34.05% p.a (fixed) you will repay £153.60 per month & £7,372.80 in total.
About the change
Whilst several lenders say that they only lend to those who have guarantors that are homeowners, UK Credit is one of the few that offers tenant guarantor loans too and the fact that borrowers can now take out up to £6,000 is an exciting development.
Lenders in the UK tend to prefer homeowners because they have added security if they have to repay the loan on behalf of the borrower. Perhaps they could sell their property, rent out a room or get another mortgage if they need funds. Also, someone who owns a property in the UK should be easier to contact in the future and traceable if they are on the electoral role – so going awol is very unlikely.
There is also the fact that to be granted a mortgage, the individual must have gone through a rigorous set of checks to be approved including employment, affordability and credit checks – something that mirrors the application of a guarantor loan (albeit more strenuous) – so this gives lenders some trust. For more information, read here about the tests for getting a mortgage.
But UK Credit and some other select lenders are willing to lend to you even if your guarantor is a tenant and just because someone lives at home or in a rented flat doesn’t mean that they can’t have a great credit score and be a good person to back up your loan agreement.
The loan term works in such a way so that if you want to borrow more or the maximum amounts of £6,000 and £10,000, the loan will last the maximum number of 60 months or 5 years. The ideal is that if you had to pay off this amount in a shorter space of time i.e 2 years, it could be a lot of repay each month and could put pressure on your finances.
However, having a longer time to repay means that you can continue to make your equal monthly payments and save up over time through your own income. Plus, should you have any disposable income such as raise from work or an inheritance, you can always repay your loan early and save a lot of money by doing so. You are only charged a daily interest rate so if you loan lasts 3 years instead of 6 years, you will only be charged 3 years worth of interest, making you a big saving.
Founder of GuarantorLoanComparison, Daniel Tannenbaum said:
This is very exciting news from UK Credit who have continued to provide a very effective and responsible guarantor loan since we started working together last year. They treat customers fairly and we only receive good feedback from customers. By offering larger amounts to borrowers with both homeowner and tenant guarantor loans, it is exciting proposition and can genuinely help people with bills, funerals, home improvements, weddings and more.
How to apply
As a licensed credit broker with the FCA, we simply provide a way to compare loans with a guarantor. Our comparison table lets you compare the APR, loan term and amount and you can simply click through the lender of your choice and apply directly. We do not charge any fees or take any of your details, so you don’t have to borrow about receiving third party calls, emails or your details getting into the wrong hands.
To apply directly with UK Credit, click here.