As it is obviously clear, we know that we are in the middle of a huge financial crisis and the main culprit for this is the banks. Over the last few years, banks have been throwing away their money by giving it to people that cannot afford to pay it back. This has all led to the demise of the banks and businesses that were relying on them failing too.
I have always said that if you have not got the money to buy something, them simply do not buy it ans wait until you are in a better position? I mean borrowing over 100k is a huge amount of money. So this is why banks need to get their act together and carefully consider who they give their money too.
I have listed down a few situations where the banks definitely should not be lending out.
1) People that are on low income, what the banks are forgetting, is that people do not just have their mortgage to pay. They have the day to day costs of living to be taken into consideration. So someone that is earning 30k in my view should not be borrowing huge amounts for a home.
2) What amount of times have they been in their jobs? 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 of the more imprtant aspects that the bank should look at is the obsessive habits people have. 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.