“Banks should not offer so easily re-mortgage deals. Not for risky investments…
How would the bank know if its risky? What you are suggesting here is that unless you have a peerless credit record and unquestionable equity the banks should not led money.”
Believe me, banks know much more than we do. they have insight knowledge in everything.
I do not think you understood what I was saying.
Banks are businesses. They are there to accept deposits and relend at a margin (or profit). They view each application on it’s merits especially with regard to risk. Not the risk to the borrower, but the risk to the bank and it’s investors and shareholders. Quite simply are they going to get their money back with profit. If the loan given was affordable within the income of the borrower, the loan is likely to be approved. Chances are that the borrower did not tell the bank manager that this was only a deposit and that a further mortgage would actually be needed to buy the property! With the loan then secured against a UK property with presumably good equity, the bank has no risk factor so loan easily approved. Not a risky investment (for the bank!)