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House Price Crash Forum

Would You Lend

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They interviewed a bloke on the box yesterday in the show Andrew Neil hosts during Prime Minister's Questions. He was a property developer who has had to lay off some of his staff recently. He was complaining that the banks won't lend to him - despite good credit record, trading history etc.

If someone came into your bank and said 'I've bought a bit of land for 500k and I'd like to borrow 500k to build 3 detached houses on it - which I will sell for 400k each - would you lend him the money.

If a bloke came in and said 'I hire fork lift trucks to industry. I want to expand the business. Will you lend me £1 million to buy up the land next door and allow us to expand our warehouse/servicing facilities? I estimate it will take me 10 years to repay the capital.'

If someone came in and said 'I've found a supplier in China who can supply me with widgets at £1 each and I can easily sell them for £2 - I need to order a minimum of 100,000 - but I only have half the money - will you lend me the rest with my house as security ...'

Will banks lend to anyone at the moment?

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Serious question.

Estate Agents can't be covering their overhead at the moment, unless they have a strong Lettings business.

Have they all got a 'war chest', built during the fat years?

Or, incredibly, does anyone think the banks are tiding them over, on the assumption there will be an upturn in sales shortly?.

It must be one or the other, surely?.

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