Hard money lenders
If you're after a hard money loan then you'll find a wide choice of hard money lenders in the UK willing to consider your application. Whilst it is true that the majority of hard money lenders will only consider hard money loan applications from homeowners, there are specialist hard money lenders who will accept applications from tenants, people on low incomes and the self employed.
One of the best places to start your search for hard money lenders is actually on the Internet. With smaller advertising overheads, a lot of the major lenders can offer competitive rates on hard money loans that you might be hard pressed to find offline. Additionally, specialist lenders who just deal online can offer some excellent rates on hard money loans as not only are their advertising costs cheaper, but their operational overheads are very small compared to those of high street lenders.
What can I get for my money?
That rather depends on what you want from your hard money loan! A lot of hard money lenders have relaxed their stipulations on what you can do with a hard money loan. With lenders flooding the market and customer loyalty to particular lenders on the wane, this is perhaps not surprising. After all, if lenders are difficult about what the money is used for, borrowers will simply look elsewhere for their hard money loan.
Buying a car for cash is one of the top reasons for taking out a hard money loan. A recent survey for Sainsbury's Bank reported that some 5.4 million of us will purchase a car in the next six months, some 65% of us opting to buy a second-hand car. Going to a car dealer or private individual with cash in hand to buy a car can open negotiating doors for the buyer. Cash makes an attractive proposition for both buyer and seller as the transaction can happen then and there without the hassles of dealing with car finance arrangements. Other major reasons for taking out a hard money loan with lenders is to fund home improvements and foreign holidays.
Hard money loan terms
Most lenders of hard money loans offer low APRs with repayment terms typically ranging for 1 - 10 years. Lenders may also offer longer repayment terms too, sometimes up to 25 years. Loan amounts from lenders may start as low as £500, although the minimum threshold is normally £1000. Hard money loans secured against an applicant's home will be the cheapest type of hard money loan available. Tenants and the self employed who can offer no other form of security to lenders may find APRs to be higher than on secured hard money loans.