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 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 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 loaning over 100k is a massive amount of cash. So this is ultimatley why banks need to sit down and think about who they give their cash 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 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 jobs? There are a lot of people that hate working and end up getting fired from every job. These people then find a job after a year or so of being unemployed and think that it is ok to go and get a car on finance, get a mortgage and sign up to things such as mobile contract. 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) A very important aspect that the banks should look at is the lifestyle of every individual. 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.