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Given your bank's concerns (refer previous and varied discussions re: credit crunch)...... ..... suggestion 1. will make it worse.... The less a bank knows, the more nervous they get, particularly if you have added debt to a level they were not prepared to provide you themselves. It's...

Off course they can. It's their right to manage their actual or perceived risk and if that means refusing to change the terms of the loan (i.e. the number and value of properties required as security), that's what they'll do. Dazz's time will no doubt come once credit gets a little easier...