Lenders typically lend up to a maximum % of the purchase price - 90% is typical. So if you default on the loan, they'd have to sell it for less than 90% of the

Lenders typically lend up to a maximum % of the purchase price - 90% is typical. So if you default on the loan, they'd have to sell it for less than 90% of the value for you to owe them anything on it. If you default though, it's their home, they're free to sell it for whatever they like. As far as the actual house sale goes, the bank/lender has little/no power in the UK. If they don't want to lend the money on the house there are others that will. The price is decided by the seller/estate agent, and the obviously the buyer. The main critera the bank has is that you pay a % of the purchase price - they'll lend typically only up to 90%-95% or so. I like the UK system personally. I think it's responsible. Not to mention the silliness of yearly home tax?! in the US and other craziness.