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  • Thats right, a lender wouldn't lend more than current value (even with rising prices), due to the risk of loss to the lender in the event of repossession and then sale of their security.

  • Okay - but does that mean they will lend the full price, or they will lend price less deposit?

    E.g. flat valued at x, deposit is y, does the bank lend x, or do they lend (x-y)

    I can see both making sense. But I guess they lend x.

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