From: Phil Deane 
Newsgroups: uk.finance
Subject: Re: Advice for a 1st time buyer please
Date: Fri, 15 Oct 2004 21:06:16 +0100

Franck Arnaud wrote:

> 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.

Lenders don't want to repossess property, its bad PR and hassle they would
rather do without.

-- 

Phil Deane
http://www.MiracleExpress.force9.co.uk