Why most Loans are Homeowners only

Why most Loans are Homeowners only If you have been on the lookout for a loan and you are not a homeowner, you may be struggling to find a loan which actually accepts you. There are lots of loans advertised on television, on the Internet and even in magazines and they build a picture that if you call them to arrange a loan everything will be alright. However, when you do call them up you realise that they do not actually accept you due to the fact that you do not own your own home and the circle then continues.So just why is this? Why do homeowners get the loans and tenants don’t? Well quite simply because homeowners secure their loans on their houses. It is less of a risk for loan companies to lend to homeowners because they will do anything not to miss a payment. Missed payments when a loan is secured on your home could mean that you actually lose that home and that is definitely not an option for most people! Tenants on the other hand do not have anything to secure their loan on and that means that it is more of a risk to lenders.So, that is why homeowners get all of the loans and tenants suffer a lot more. Also, if you do manage to get a tenant loan you will notice that you can only borrow up to £25,000 whereas homeowners can borrow practically as much as they want to.