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Tenderloin-
Scary for sure.
I did due diligence late last year for work on a specialty mortgage broker focusing on jumbo loans. Lots of London houses bought with 5x joint HH income mortgages to professional couples earning £300k+ between them (two law associates, consultants / bankers etc). Frightening monthly payments.
NickCJ
I don't know, some people seem to run their finances shockingly close to the edge. Your £2 mm house occupant might have £200k of equity and the thick end of £10k in monthly mortgage payments against volatile income. Defeasing a grand of that in a bad month could be quite welcome.