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As more landlords face foreclosure, it is becoming harder for renters to get a tenent loan. The main problem appears to be rising default rates, lower property values and a general unwillingness from banks to offer new tenent loans. Since they cannot be secured with equity, most banks are staying away from tenent loans until the housing crisis is over.

“With the banks and building societies struggling to raise money on the money markets, tempting savers has become increasingly important. With fixed-rate investments, the institutions can guarantee that they will have your money for a set period of time, which they can then use for lending on mortgages or personal loans,” stated Rachel Thrussel, the head of Savings with MoneyFacts.

“With rates on fixed-rate bonds continuing to increase for the first time in many years, we have seen all of the top six Moneyfacts.co.uk best buy places being taken up by rates of over 7%. Fixed-rate investments are not suitable for everyone, but for anyone who doesn’t need access to their money for a period of between six months and five years, then rates as high as 7.10% can be found.”

Related reading: Tenent Loan