All lenders have their own unique policies and eligibility requirements when it comes to issuing loans, but what remains the same with all lenders is the criticality of minimising risk.
Loans are issued only when a bank or lender is confident it will not lose any of its own capital in the process. Hence, if you can provide sufficient evidence to convince the lender this is the case, you could qualify for a competitive loan.
What about foreign nationals who may have only recently moved into the UK? Is it possible for a foreign national to qualify for a loan, or are there additional restrictions placed on citizens of other countries?
Personal Loans Based on Creditworthiness
Unfortunately, anyone who has only recently relocated to the UK is unlikely to qualify for a personal loan. This is due to the fact that almost all personal loans are issued on the basis of creditworthiness.
With no security put forth as collateral for the loan, the funds are issued purely by way of merit. Building a credit score strong enough to qualify for a personal loan is something that typically takes several years. Newcomers to the UK will have no credit score upon their arrival; therefore will need to begin building one from scratch.
There may be some exceptions to the rule, where a specialist loan broker could consider other factors alongside credit history. Examples of which may include proof of income, proof of general financial status and so on. It may also be possible for new arrivals to the UK to qualify for a loan by getting someone to co-sign their application.
Can I Use My Credit Score from Another Country?
As it stands, there are no generally accepted standards where international creditworthiness is concerned. Consequently, this means that there is no allowance for a credit score established in any other country to be used as evidence in the UK.
Even if you are able to provide formal proof of an exceptional credit score abroad, it is highly unlikely it will be accepted by any major UK lender.
Could I Qualify For a Secured Loan?
Secured lending has a tendency to be more flexible, where assets of value are used as an ‘insurance policy’ by the lender. Many types of secured loans, particularly those from specialist lenders, are open to borrowers with no proof of income, no evidence of current financial status and a comparatively poor credit score.
Depending on your requirements and the value of the assets you own, it may be possible to qualify for a secured loan as a new arrival in the UK. It may even be possible to qualify for a mortgage or property loan if you are able to provide an adequate deposit and cover the costs of the loan with assets of sufficient value.
Though in all instances, it is essential to enlist independent broker support in order to match your requirements and financial circumstances with an appropriate lender.
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