# Mortgage final payment not taken - can bank refuse tracker



## Birroc (8 Dec 2010)

Hi,

A relation of mine has a query about her mortgage. She took out a mortgage to build a new house and they finished the house without needing the final payment. They agreed a tracker mortgage with the bank 2/3 years ago. Now they are going to tell the bank that they dont in fact need the final payment. Their concern is that they agreed the tracker based on a certain loan-to-value (dont know what value % or tracker amount)  - can the bank refuse the tracker interest rate and re-negotiate the mortgage because (a) the final payment was not drawn down or (b) the LTV is invalid (i.e value has gone way down)? 
Will the bank look for a re-valuation to finalise the mortgage?

Any advice appreciated.

<Sorry wrong forum>


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## Greta (9 Dec 2010)

The bank won't penalise your relative because her LTV is gone down - on the contrary, this is a good thing from the bank's point of view, the lower the LTV, the less risky it is for the bank.

I don't know whether banks are generally looking for re-valuation but I think it depends on what's in her mortgage contract.


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