25 02 2016
Tenant Guarantor Loans
We are pleased to announce that we can now arrange a guarantor loan of up to £7500 if your guarantor is a tenant, if your guarantor is a home owner then you can apply for up to £10,000, If you are a home owner then you can also 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 39.9% APR, massively reduced from the previous low of 79.9% APR we used to be able to offer. Home owner guarantors can now be offered as low as 29.9% APR.
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
new car tax disc rules
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.