My parents are in the process of building a new house on a plot that they own with the intention of selling their large house when the new one is completed. To fund the building they need to take out a short term loan.
They are quite happy to secure the loan on their current house and the new plot. But so far the haven't managed to find a lender willing to take them on.The problem seems to be that they live on quite a small pension. Their current bank said that they would lend them the money if - get this - they lied about their income on the application! Something that there moral outlook would never support.
It seems absurd that the banks are happy to lend huge amounts to younger people who are willing to lie about there income - a high risk policy it seems to me - but not a short term loan to an honest couple for a short period secured against high value property.
There must be a lot of people out there who are in a similar situation so I assume there must be companies who have loan packages which are tailored to this sort of customer.
So does anyone know who these companies might be?
TIA
Sam