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If definitely seems have chenged in last 3 years. Some banks were still sticking to the multiples of salary qualifier but thats gone out the window now in favour of percentage of income. Banks don't care too much about people renegating on payments as can take back the property which again isn't a problem unless big drop in property values.Quote:
Originally Posted by higgins
I was a poor student at the time they opened and like all my friends I opened mine at the end to get one less year of poor student donations and one extra year of donations at the top ammount.
I dont think its in the best interest of the banks to lend crazy amounts just because they can take the house back?
As mentioned a drop in house values then the houses they have are not worth as much but I suppose they have then insured against the value they gave the buyer at the time? They make the money off the interest on the loan, they want you to have this loan as long as possible which is why they try make it realistic for you to pay back.
They are also already up at the 35 year long mortgages now so cant really push that further either.