Yes, this is the point

And therein lies the rub: while there are some fantastic rates available, not everyone qualifies for them.

The mortgage market seems to be splintering into two – the haves (those with substantial amounts of equity or a big deposit) and the have-nots (those who have only modest equity or a small deposit). It means those who are can least afford it must pay the highest rates of interest because lenders regard them as higher risk.

You say that like it\’s a bad thing.

Yet the original problem was not discriminating between borrowers on the basis of risk. This is exactly what we want, lenders discriminating.

And yet people complain…..

1 thought on “Yes, this is the point”

  1. And the people who have the equity and the sizeable deposits, or are willing to live in a location where the equity or deposit they do have makes up a higher percentage of the loan, are the people with saving habits who are willing to forgo other things and not live above their means.

    This is not highly correlated with income. Ultimately the best rates from the banks go to people who by their behaviour have demonstrated that they are likely to be a low risk of default. Which is exactly as it should be.

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