“The interest rates on loans that people expect and the one they are offered might well not be the same”, according to the leading newspaper in the UK.As a citizen of this prestigious part of the world, you cannot do anything about this because banks have the authority to do so. In fact, such misleading interest rates are the main source of income of the banks and do not be surprised, it is absolutely legal.
One might argue that it is totally against the lending values and there is a clear lack of transparency. As per one more data, around 51% of the borrowers are able to get genuine interest rates while the rest of 49% may have to pay higher rates than they see in the advertisement.
Perhaps, this might be the reason that people in the UK do not prefer borrowing from the banks and the demand of direct lenders is increasing at the rapid pace.
Many financial experts have raised concerns on the increasing gap between the borrowers and the lenders. In 2018, there is a slight difference than last year because if we look at the benefits of loan with no guarantor or other flexible loan deals, it has been found that the bond between them has been strengthening day by day.
Why Loan with No Guarantor Gets Special Mention?
It may be a wise question to ask and it has a perfect answer too. People want to stay away from the bank lending because they know that it would be a cumbersome process where guarantor is mandatory to get required funds. Situations like financial emergency are very cruel and they do not allow people to take some time. For example, your children have to pay their university fees and you cannot wait for long to have someone, who can guarantee your loan. There should be a proper fee payment before the due date and getting the desired funds is the priority.
There are many such examples of financial urgencies. The blame should not be on the banks because they have authority to do these things or they have their own compulsions. Approaching the direct lenders has proved vital because they have shown some flexibility in their lending terms. The guarantor’s signature is not mandatory for them and they are ready to accept applications despite not signed by another borrower.
With no obligation of finding out the guarantor, borrowers are actually on the receiving side. They can get the funds within 24 hours and use them to implement their financial plans.
Isn’t It Risky For the Lenders?
Yes, of course, it is risky and every lender knows it very well. Still they are stuck to their flexible lending policies. The main reason is that the modern-day lenders are not lagged behind in taking the risks. They have a TRUST ON THE BORROWERS that they will repay the funds on time.
Now it is the responsibility of the loan applicants how they make the repayments on time. Finding the guarantor is indeed a time-consuming process and a very hectic too. More importantly, no surety that someone may agree to become your guarantor. Such things are more difficult for those individuals, who have accumulated lots of past credit mistakes in their files.
Lenders understand all these compulsions and thus, they have no issues on offering the debts, despite no guarantor is available.
Where the Lenders Prove As a Perfect Ally?
In the year 2018, the demand of small term loans have increased a lot and it is looking like the trend will continue until the actual Brexit happens (29th March 2019). People need more and more assistance from the lenders otherwise, it would become very difficult for them to survive amidst plenty of financial problems.
Fortunately, the loan providers have responded well with bringing fresh offers on the no guarantor loans in the UK. They have set a series of short-term loans in which they do not require guarantor’s assurance. These loan options are:
Health Emergencies: No one would anticipate about the medical emergencies, as they can arrive without any indications. There might be the time when you lack the enough savings into your deposit account and paying the medical bills is almost impossible. In that emergency, finding the guarantor is just like wasting the time. Therefore, getting the no guarantor loans is a smart decision because it can pave the way for quick funding access.
A Relief for Students: Banks and many lending institutions present the educational loans, but on the higher interest rates. They also require a guarantor since the students generally not doing any job. Again, finding the guarantor is not easy for them since they are living on rent or hostel. In such situation, the loans without guarantor from the direct lender open up the doors for them.
Home Renovation: The loans can also be availed during the home renovation. In the situation, half of the improvement has been done but half is still remaining because you have an acute shortage of funds. For the purpose of filling this gap and continue the renovation, you can concentrate on getting funds through these loans rather than on finding out the guarantor.
Going for a holiday: You are in the midway of your holiday tour, but suddenly realised a shortage of funds. It will be a huge risk because your family members have lots of expectations from you during this tour. In the middle of the tour, on whom you can rely upon to become your guarantor, perhaps you have no answer. Thus, applying for loans where co-signer is not required may be the right way to go.
The unpredicted nature of the life keeps confusing the people. They never know what can happen next or they might need an urgent flow of funds to fulfil regular and irregular expenses. Taking everyone loans like these no guarantor ones can assist a lot if you are smart enough to choose the right lender. Indeed, it is an important point of the lending process and crucial to have a lender that can act as a financial ally. With a comprehensive online research, you can compare various lenders and their policies and later come out with the right decision.
Why looking for another person to be your guarantor, just accept your lender as the guarantor to have a better finance in remaining half of the year.