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Subject: Re: Times: Homes at risk as banks seek more security for credit card Posted on: Mon, 24 Mar 2008 13:41:43 +0000

M Holmes wrote:
> In uk.finance Mike_B wrote:
>
>>>> Maybe someone needs to remind the banks of the old adage "you cannot
>>>> have your cake and eat it".
>
>>> Possibly the customers should be told : "You can't pretend you're
>>> unable to pay back a loan of £10,000 if you live in a house which
>>> would put more than £10,000 in your pocket if you sold it"
>
>>> I wouldn't stand for that if I was owed money, would you ?
>
>> Then why would you offer unsecured loans if your expectation of
>> repayment would be from the sale of the property?
>
> If I were offering money for loan, then I'd take the highest interest
> rate the borrower was willing to pay, wouldn't you?
>

I would consider the credit/default risk and offer corresponding
interest rates, wouldn't you?