25 02 2016
We are pleased to announce that we can now arrange a guarantor loan of up to £5000 if your guarantor is a tenant, if your guarantor is a home owner then you can apply for up to £7500, If you are a home owner then you can apply for up to £10,000. This is a major increase from the previous maximum level of £3000, and we see it as a move that shows confidence in the way the UK economy is improving. Not only that but the APR for a guarantor who is a tenant can be as low as 49.9% APR, massively reduced from the previous low of 79.9% APR we used to be able to offer.
Considering the increased risk in lending to a guarantor who is a tenant opposed to a guarantor who is a home owner, and the fact that most guarantor lenders operate around the 50% APR mark for when using a home owner, this is a market leading offer and will shake up the guarantor lending market in a big way.
It is due to lenders looking a case by its merits and not necessarily that the guarantor is a home owner. If a potential guarantor has rented their house for many years and has a good credit record, then why should they be treated any differently to a home owner? The simple answer is they shouldn’t, the tenant with the good credit history is going to care about their credit history being affected just as much as the home owner, so isn’t going to put their name forward unless they trust the applicant, which is the basic premise behind guarantor loans.
Loans are available over 5 years and a typical repayment schedule on a £4000 loan over 5 years at 59.9% APR will look something like this;
Applicant Borrows £4000 over 48 months
Approximate monthly repayment = £187.77
Interest and fees = £5012.87
Total to repay = £9012.87
But if we take that example over 3 years;
Applicant borrows £4000 over 36 months
Approximate monthly repayment = £214.26
Interest and fees = £3713.36
Total to repay = £7713.36
So if you can afford an extra £26.49 a month, you will pay off your loan 12 months earlier and save £1299.51 in interest. So taking the above into account, it’s always best to ask for a quote on different loan terms, and select the one that you can afford in the long term and try and pay it off as early as possible.
If you’re looking for a guarantor loan then apply here and let piggy take care of the rest for you.
25 02 2016
Do you know the new car tax disc rules?
On the 1st of October 2015, the new car tax disc rules came into force and around 50% of drivers still don’t know what the changes are or how they will affect them, or when the changes come into force, according to a survey by money.
Nearly 33% of drivers won’t even bother to try and find out what the new rules are, and 6% believed the changes where coming into effect next year. I must admit until this information was brought to my attention, I had a small idea that changes where coming into force, but all I knew was the DVLA is going to get rid of paper tax discs.
We have had paper tax discs now for 93 years, so this is a bold move forward, it is hoped that in this economic climate when people don’t have much free money lying around that the option to pay monthly By Direct Debit, rather than in one or two large sums, might help out the cash flow of the cash strapped. It is also hoped that it will save the tax payer £10 million due to less paperwork.
I welcome the move, because I have had that feeling when you forget that your tax disc is up for renewal, only for a reminder to land in the letterbox that you are going to be around £100 poorer than you thought you were that month, with Direct Debit, you need never have that feeling again!
Also in the changes are the fact you can’t sell your car with tax on it any more, the person buying the vehicle will have to arrange insurance and tax there and then before driving the car away. This may be a pain in the backside when buying a car, but should stop those people who are driving a newly bought car home without insurance with the intention of sorting it out when they get home, or not as in some cases!
You can familiarise yourself with the new rules on the DVLA website here.
25 02 2016
The term bad credit relates to a variety of potential factors and elements that display on a credit file of an individual. This can be caused by a wide variety of reasons and generally fall into the several categories. The problem for the individual is that having bad credit in terms of items displayed on their credit file will have a detrimental effect on their ability to borrow money. The reason for this is that the person’s credit file will generally be utilised by a lender to make the relevant lending decision and if forms of bad credit are contained within the file, the number of lenders that will offer any form of finance or loan to individual will be significantly reduced, if any at all.
When an individual applies for a loan, the lender takes into account a wide variety of different factors, these include age, employment information and also they take into account normally, a credit check which is from a company that collates the information in the form of a credit file. This is then utilised to make the lending decision. However due to the recent recession, more and more individuals have now found that they now have bad credit in the form of
• Late payments
• CCj’s otherwise known as County Court Judgments
• IVA’s otherwise known as Involuntary arrangements
Depending upon the severity of the bad credit or the situation, information is contained on the file for a period of time. This can range from one year through to 6 years. This information is displayed on the person’s profile when a lender does a relevant search after a loan application.
25 02 2016
Up until recently, the only people who could act as your guarantor for the loan, was a home owner. Well now there is some good news, we can also now use tenants as a guarantor. As long as they are aged between 18 and 65 with a good credit record, they can apply to guarantee your loan. This will give many more people access to the credit they need as before it was almost impossible for them find a home owner to guarantee it for them, and with less and less people being able to afford their own homes, meaning less people available to act as guarantor then its a positive step forward in this area of lending.
There is however a catch, you can only apply for a loan from £1,000 to £5,000. This is due to the increased risk of the guarantor being a tenant and if things go wrong down the line, it would harder for the lender to recover the sum owed. Also to take this risk into account the APR can be slightly higher, in the 50% apr to 60% APR range compared to the typical 48.6% it is for home owner guarantors, so a representative APR example would be if you borrowed £2,000 over 2 years at a representative apr of 59.9% fixed, you would pay £144.82 a month. The interest payable would be £1,475.68 making the total cost of the loan £3,475.68.
So as you can see it is more expensive than a home owner guarantor but still around 20 times cheaper than a payday loan with over 2000% apr. And as always with guarantor loans the apr is fixed, so you pay the same amount each and every month and it will not change over the period of the loan as long as you keep up with your repayments. This will enable you to budget your finances effectively and help you get back on track.
So if you can find a guarantor that is a home owner then great, it will work out cheaper, but if you only know someone who is a tenant who will guarantee the loan, we can help you out and get you the credit you deserve.
Apply now for no obligation quote tailored to your circumstances.