Banks don’t give loans like that to people who aren’t high earners already.
People could happily spend 50%+ of their income on their mortgage but banks will not give them those loans because they are seen as high risk, whereas people can rent at 50%+ of their income because there’s less risk for the landlord (their only real risk is having to find a new tenant).
Yes I’ve applied. I bought a place last year so it’s very fresh. Banks being math-based is exactly the point. They won’t bend the rules for you. Plus the expense is mostly set in stone once you buy, whereas with renting you can rent an affordable place and have it increase year-on-year every year following, taking it from within that 35% to above it.
Don’t you have banks that finance 100% of the price? Sure, they will charge higher interest, but if you’re saving half the rent it won’t be that bad…
Banks don’t give loans like that to people who aren’t high earners already.
People could happily spend 50%+ of their income on their mortgage but banks will not give them those loans because they are seen as high risk, whereas people can rent at 50%+ of their income because there’s less risk for the landlord (their only real risk is having to find a new tenant).
Have you applied? I found banks very reasonable, like math based. Landlords go on feelings/profiling, in my experience and very often go on 35% rule.
Yes I’ve applied. I bought a place last year so it’s very fresh. Banks being math-based is exactly the point. They won’t bend the rules for you. Plus the expense is mostly set in stone once you buy, whereas with renting you can rent an affordable place and have it increase year-on-year every year following, taking it from within that 35% to above it.
Isn’t that all in favor of buying?