Risk and interest rates

[Dr Jekyll]

Reading the 'ask a car salesman' thread I was reminded of something I've thought about before and not quite understood.

Suppose you take out a big loan over a few years, you have no current credit and a good history so you get a low interest rate. A few months later you try for an additional loan, this lender agrees the loan but at a higher interest rate because your existing commitment makes you a little risky.

But presumably the original lender is also at additional risk, in fact both loans are equally risky. Has the original lender any comeback, such as priority if you run into trouble with repayments? Or do lenders just take the view that it all averages out in the end?

[Stay in Bed Instead]

Unless secured in some way, no creditor has preference over another.