The current historically low interest rates have bumped up the borrowing capacity for most people, which in turn is allowing them to get into the market. Increased borrowing capacity also allows people to release some of their equity, to help them through tough times. It’s important to understand how banks lend money. They want to know who is borrowing the money. They want to know if you’ve got dependants and what the purpose of the funds is for. But as you can see in the image below of a bank calculator, banks are primarily interested in your cash flows. They’re…
