As more tenents try to get financial assistance, they are finding it nearly impossible to get a bank loan. Commonly referred to as a tenent loan, these are special loans that used to be widely available for renters. However, thanks to the housing crisis, tenent loans are harder than ever to find and many banks have stopped offering them entirely. Although there is a definite need for tenent loans at this time, until the housing market recovers, getting one may be next to impossible for most tenents, especially if they do not have great credit.
Louise Cuming, head of mortgages at moneysupermarket.com, said: “These are worrying times for tenants, landlords and developers. With the cost of living spiralling out of control, tenants are unlikely to be willing to wear increased rental demands”
She added: “Those landlords wishing to remortgage buy to let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates. This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling though, there may well be many landlords having to sell their investment at a loss.”
Related reading: Tenent Loan
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