Why do banks and other lenders keep lending money to unsuitable, high risk candidates who far less likely than normal to repay the money. There are guidelines set in place that are intended to prevent repayment problems, but many of these are being ignored or bent by lenders for clients. It makes no sense that lenders would act against their own best interests, but that is what seems to be happening more and more often at the moment. A large number of different guidelines that seem to have been standard in the industry appear to have been brushed aside.

This is believed to be so that lenders can take advantage of the increased number of people involved in the property market. The price of property has sky rocketed which means that people need to borrow larger and larger sums of money in order to afford decent property. The lenders are happy to lend extremely large sums of money to those people who wish to enter the property market. This can bind the borrowers to that financial service provider for the rest of their lives, or at least that seems to be the mentality. The focus seems to be on gaining a greater number of clients, without to much thought about how those people are going to repay their loans.

The upward nature of the property market seems to be dependant the willingness of lenders to provide mortgages and loans of increasing amounts. The requirements that the lenders analyse in order to ensure that a loan can be repaid are being altered as well so that a greater number of loans can be approved. This is leading to a skewed picture of the borrower's true ability to repay the loan or mortgage and is contributing to the number of people who are unable to repay their loans. There are a large number of reports of potential borrowers and loan applicants being told exactly what to say on their form to get the largest possible loan available to them.

The length of home loans and mortgages as well as the percentage of the total property price has been increased dramatically over the last few years. This is due to the desperation of people who want to enter the property market but are unable to do so. This desperation leads them to agree to financial terms that are outside their abilities and the effect is that neither side ends up profiting from the deal. The borrowers often end up without their home if they cannot afford to repay the loan, as well as receiving a bad credit record. The lenders may recoup their money, but it takes a long time and can often end up costing them money as well.