Generation Rent. Thousands more young stuck in rental sink hole. No hope on horizon

John1993_2

tweetipie21 wrote: »

I rent - I pay my monthly rental which is higher than what the mortgage payment would be should I have bought the house right - unfortunately due to my earnings the banks appear to tell me I cant afford the mortgage - how come i can afford to rent for the past 7 years paying a higher payment than someone who would have had a mortgage on the same property? It doesnt make sense and is certainly not fair!!!!

You can pay your rent today. If you don't pay it, or can't pay it tomorrow, you are evicted, and the bank loses nothing.

If the bank lends you money, then not only do they lose out if you can't pay, but they know that you have less of an incentive to pay than when you are renting, so it becomes less likely that you'll keep paying, so it absolutely does make sense from their point of view. They also know that you'll become liable for maintenance and repairs when you own.

As for "fair", it's their decision as to who they'll lend to, they aren't really interested in setting the world to rights, they are only interested in profit, just the same as Tesco, or your local car dealership.

Cornucopia

Loughton_Monkey wrote: »

Love the name.

But I would have thought 'South Chelsea Spa' would have been even better.

Whilst it's now more likely to have a Spar, than a Spa, the name is apparently authentic.

http://www.southwark.gov.uk/info/200159/history_of_southwark/1009/bermondsey_history/1

OffGridLiving

John1993 wrote: »

You can pay your rent today. If you don't pay it, or can't pay it tomorrow, you are evicted, and the bank loses nothing.

If the bank lends you money, then not only do they lose out if you can't pay, but they know that you have less of an incentive to pay than when you are renting, so it becomes less likely that you'll keep paying, so it absolutely does make sense from their point of view. They also know that you'll become liable for maintenance and repairs when you own.

As for "fair", it's their decision as to who they'll lend to, they aren't really interested in setting the world to rights, they are only interested in profit, just the same as Tesco, or your local car dealership.

It's all about risk mitigation. In the current marketplace all a FTB can do is reduce the perceived risk by improving their credit rating and deposits.