Over far too much wine; I and a friend enjoyed a heated discussion about borrowing money.
He maintains that you can fairly easily borrow the value of your home/other property regardless of your income. He thinks that the lender will be happy as they can recoup their losses by selling the property.
I disagree; I think that you cannot borrow beyond what you can afford to service and that this depends on you income.
We both own properties worth far more than we could afford to buy (if I am right). I proposed a situation whereby an out of work person might be left a house worth 600k and decided to try and borrow 400k against the house.
Who is right and why?
TIA :)