As part of our ‘House Buying Guide‘ we look at realistic mortgage and borrowing options and how to formulate what amount of money can be borrowed and more importantly be repaid.
We have all read and heard the recent news stories of families that are in difficult mortgage related positions, some of which immediately entered into a negative equity position. Dispatches recently reported thousands of people were accepted for 125% interest only mortgages by the five leading banks and some bank clients that were allowed to obtain a mortgage of 10 times their earnings. How could this ever be described as responsible lending?
