Getting a Tenant guarantor loans limits you in a lot of ways, what this means
is that your guarantor will be a tenant that has a good financial status. With
the fact that such a person is a tenant, there are limits to the amount of
money that such a person can get from the lender. For some lenders, the limit
is £7,500, while for those that have their guarantor as a home owner can
receive up to £10,000. Many people do not see this as a big issue, especially
if they are not planning to get up to £10,000, but this becomes an issue for
those that need more than that, probably to start a business. Another thing is that the annual percentage
return on the guarantor loans based on tenants are usually higher than for
those guarantors that are home owners, this has been seen to be true over time.
There seems to be a lot of benefits
associated with having your guarantor as a home owner, rather than a tenant.
You might not see it now, but you might need more than the limits of a tenant
at a particular point in time. The gap between the APR of the Tenant guarantor loans and that of home
owners is quite high before now. Recently, lenders have been reducing the APR
associated with tenant guarantors, in order to help the economy of their country.
Before, it was as high as 79.9% APR on the Tenant
guarantor loans but now, they have been reduced to 39.9% APR. This will
definitely lead to a shaking of the loans market. Many lenders do not just take
these decisions themselves. Sometimes, they are compelled by government
policies. This does not mean that they will not make their profit, they will
still make as much as they want to make.
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