Registered: Sep 2008
08-16-12 02:24 PM
Quote from Free Thinker:
"These so called 'Buy to let' properties, which often have to make mortgage payments with the rental income, could suffer. However I think that this type of product is immoral. To me it appears that the bank has decided that someone can borrow money to buy a property and rent it out to someone else who pays the mortgage for them.
I don't think that this type of agreement should be allowed. It is basically the bank saying that one person can have free money to take advantage of someone else who is less fortunate. The only thing that differentiates the landlord from the tenant is the fact that the bank allowed the landlord to borrow money. It is like giving one person free money at the expense of someone else because they have a better credit rating. "
Many of the rented properties in the UK have existing mortgages on them from the landlord. The tenant pays the mortgage for them with the rent. If the rent cannot be made it may impair mortgage repayment. Is it morally right to allow one person to rent out a property when they do not own it. They are basically getting a house bought for them by someone else just because the bank allowed them to borrow the money to buy the house.