Banks earn their money from the interest rates charged on over-drafts, loans and mortgages.They earn quite a lot of money this way.  So much so that they can pay their bosses very large bonuses.

We know this.So why today have the ‘rules’ for gaining a mortgage changed making it even more difficult for people to get one?

One reason is because of all the defaulting of mortgage or loan repayments losing the banks money.

Without borrowing, the banks could not continue.  They need people to borrow money.  It is the bank’s life-blood.  It is their raison d’etre.

One would have thought that because they rely on borrowing, they would put money by (gaining interest while they do this) in case people default on their repayments and so recover their costs.  They could use the money set aside for the unreasonable size of the bonuses.

Self-employed people have to pay for insurance, professional organisations and courses to maintain their qualifications and working status.   Surely the banks setting aside money in case people default is part of their business protocol?   Naturally certain criteria needs to be put in place so that their money is protected but the new rules today with so many bolts and braces that hinder the borrowing are not only counter-productive but ridiculous in the light of the still very large bonuses going out at the other end.