Experts are stating that there is a greater need for tenent loans, especially for those looking to fix up properties. Right now, few banks are willing to offer tenent loans, particularly if there is no security being offered for the loan. The problem is affecting many especially in certain areas of London. Until more tenent loans are provided, these consumers may continue to float about in limbo with few hopes of getting out.
Derek Livesey, director at the conversion firm Econoloft, says: “Especially in the South-east, there is not always the garden space for building outwards on ground level, so people are finding no alternative to using the space in their loft. They are still having families but simply cannot afford a bigger mortgage or the cost of moving.”
Jonathan Davis, spokesperson for Housepricecrash.co.uk, states “In the early 1990s, couples would get married and move into a one-bed flat. Then they had children but couldn’t upsize as the value of their home had plummeted. Their lender wouldn’t let them sell at a loss and they couldn’t raise any more money, so they just had to cope. In my view this is exactly what will happen again.”
Related reading: Tenent Loan
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