As we can all tell the world is in a huge financial black hole and this situation has been caused by the banks. Over the last decade banks have been giving ridiculous amounts of money away to people that cannot afford to pay it back. This has all led to the banks crashing and businesses that relied on them failing as well.
I have always had a motto that if you cannot afford something then you should not buy it, why are people getting out huge mortgages that they cannot afford the repayment for? I mean borrowing over 100k is a huge amount of money. So this is why banks need to buckle up and start thinking carefully about who they give their money to in the future.
I have listed down a few situations where the banks definitely should not be lending out.
1) People that are on small salaries, what the banks are not taking into account is the fact that people have a lot more monthly expenses then just a mortgage. They have travel costs, food costs, bills and much more that have to be taken into account. So someone that is earning 30k in my view should not be borrowing huge amounts for a home.
2) How long have they been in their work place? There are some people in this world that cannot be bothered to work and end up getting the sack. These lazy people then decide to get back into work after a year and as soon as they get their first wage packet they just go out and get a mortgage and expensive cars on finance. And to be honest no one tells them different, the bank just hands it over and the tax payer’s end up suffering in the long run.
3) One crucial aspect that banks should look at is the habits of an individual before they loan any money out. How many times have gambling addicts got given a mortgage and car and then blow there monthly repayments on playing online poker or roulette. Addicts just will not stop so lending them money would be a huge no no.