r/Glasgow Tools

The terms of the loan won't have changed- it's a contract, so can't be amended*. What will have changed is that when the loan terms expired rather than refinancing under similar terms (as he was clearly relying on) they just got called in.

So this isn't like your mortgage terms being changed - because your bank can't legally do that - it's the bank refusing to remortgage you on the same terms when your mortgage ends, which they are perfectly entitled to do.

So yes, it's possibly a little bit shitty of the bank to not renew the loans, but a) perfectly legal for them to do so under the contracted terms, b) as a business owner he should have been perfectly aware of that possibility, and c) if the business was financially sound he shouldn't have had any problems refinancing through a third party.

So it sounds to me as though he had leveraged himself to the hilt, and was entirely dependent on being treated with goodwill by the bank, which is a very very silly way to run a business - he was making hay while the sun shone but not at all preparing for a downturn in the housing and credit sectors, which as we know is exactly what happened.



*with the notable exception of the student loans sell-off, but they got away with that because it's the government