From: franck@nenie.org (Franck Arnaud)
Newsgroups: uk.finance
Subject: Re: Advice for a 1st time buyer please
Date: 15 Oct 2004 07:50:59 -0700

Ronald Raygun:

> Ah, it does mean you're thinking of lying about your income.
> There's no way you can borrow 100k on 20k income, 

But surely someone will borrow 100k to someone (or group) who 
has 100k of equity to put into the asset backing the loan, 
whatever the income. For the lender there's hardly any risk, they 
just sell the house should the borrower not pay, after all they 
do not care whether a mortgage is repaid by a borrower or a punter 
buying the repossessed property. With 50% equity it should 
be immune to house price falls for the lender. It is of 
course risky for the borrower(s), who may lose their entire 
equity, but that's not the lender's problem.