They are personal loans you can get when you are renting a property.

Tenant loans are normally unsecured so you do not need to be a homeowner or use another asset as security to borrow the money.

How to get the best tenant loan

The best loan for tenants is the one that offers the lowest interest rate for the money you need, and for the term you want to pay it back over.

This comparison shows the representative APR offered by each lender, but you may have to pay a higher rate depending on the loan you want or if you have bad credit.

To qualify for a lender's representative APR, you usually have to borrow a certain amount, for example, £5,000 to £14,999 over 1 to 3 years.

You can also apply for a tenant loan if you are self employed, but you need to have at least 1 year's audited accounts to prove your income.

What rate will you get?

The rate you get is based on:

  • The loan amount you want: This can affect the interest rate you get offered, as some lenders set borrowing tiers for their loan rates.

  • The length of the loan: A longer loan can reduce your monthly payments, but you could pay more in interest over the term.

  • Your credit record: A better credit history will improve your chances of getting the best rates offered by a lender.

To increase your chances of getting accepted for a loan as a tenant, register on the electoral roll for your address.

If you have bad credit, you could compare guarantor loans instead. You can apply for them with a friend or family member acting as a guarantor.