Although few banks are offering tenent loans at this time, the ones that are will be charging a premium price, according to experts. Tenent loans are generally seen as being very risky for banks and the few that will offer them are doing all they can to minimize their risks. Consumers seeking a new tenent loan should be prepared to face a lot of rejection and sky high rates. In addition, these loans may also come with hefty application and processing fees, and may be impossible to afford. Experts recommend trying for a personal loan before a tenent loan for this reason, since banks are still offering this type of loan to most consumers.
Michelle Slade, analyst at Moneyfacts.co.uk, comments: “Anyone looking for a personal loan can no longer find rates of less than 7%. Yourpersonalloan.co.uk, which is funded by The Co-operative Bank, has increased its rate from 6.9% to 7.3%. Back in June 2006 rates as low as 5.6% were on offer and even this time last year rates as low as 6.1% could be found. Today the lowest rate on offer is from The AA on its telephone loan at 7.2%.
Related reading: Tenent Loan
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