Loan at a reasonable rate?

[maroberts82]

My parents are desperate to get get a flat in London (poss East Dulwich) and have enough money to purchase a flat, but unfortunately ?65k of that money is tied up in a savings account and cannot be withdrawn under any circumstances until June 2014. Both parents have retired and so cannot get a mortgage. Does anyone have an idea for getting a reasonably good value loan of around 50k GBP? The lender could be guaranteed a proportion of the 65k GBP when it is up in June. Someone has suggested getting a loan for 5 years with an interest rate of around 6 or 7% (which seems very reasonable) and then paying it off early, but I think the early repayment charges may be very high. Also they would have to pay back a chunk of the capital each month which may be difficult before June 2014. Both parents have a spotless credit history, a home in Sussex, and a flat they rent out in Kensington.

Any ideas or suggestions?

Many thanks

Mark

[motorbird83]

HSBC do personal loans of up to 25k for 5.1% - 5.7%. If each of your parents took one out that should work and the term is 8 years. The early repayment charge is only 1 months interest so not at all onerous.

We are doing work to our house and just took one out.

[Curmudgeon]

Have they approached their own bank about a loan using their savings as guarantee?