The current housing situation in the UK is rather chaotic. Loan firms are aware of this, and many have developed a new type of loan called a tenent loan. These are also called “rent-back” loans or “sale-and-rent-back” loans. Regardless of their name, there are many companies giving these loans which are disreputable.Tenent loans are ones that are given to people who are completely unable to keep up with their mortgage payments, for whatever reason. With a tenent loan, the person sells the home to the company giving the loan in exchange for renting the home back and still being able to live there. This is a good situation for people with strong sentimental ties to a particular home, for instance.While there are legitimate lenders offering these loans, many lenders of tenent loans are shady and will evict people or scam people at their first convenience. In fact, the Office of Fair Trading has launched an in-depth investigation into these loans and the lenders who provide them and hopes to have a full report ready by September. The Treasury is also ready to step in if necessary to deal with the loan lenders.In the meantime, anyone looking for a loan is encouraged to read the fine print of every document before signing so as to avoid possibly dreadful situations.
Related reading: Tenent Loan
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