Furthermore, some lenders will allow landlords with income of £25,000 to build up a portfolio of £1m to enable them to house others, but may only be prepared to give them £100,000 to house themselves. On any metric that is unfair, unsuitable and – as we are now seeing – systemically unstable
The rent from the house provides the income to service the loan.
How do you think a business buys machinery? By proving that it can pay for the machine even if it doesn’t use it?
A commercial landlord proves it can pay for the building without tenants?