# Tracker on buy 2 let



## tosullivan (13 Jul 2010)

we took out a mortgage 4yrs ago on a buy2let. First year was fixed at the low rate and then after that it went on to the banks variable rate. We opted for interest only for the first 5yrs aswell.
The first month or 2 we changed to a tracker on the interest only. The interest only is due to revert to payments next year so will they try get out of the tracker at this stage?

Are the terms of my tracker expiring with the interest only?


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## DonKing (13 Jul 2010)

I had Interest only periods with one of my trackers with First Active. When the interest only period expired there was no attempt to get me off the tracker rate.

With Bank of Ireland on the other hand they tried to push me back to a variable rate when my interest only tracker period expired. I had to make a couple of calls send in a couple of letters (I stood up to them) until they accepted that they had made a mistake and my tracker was valid for the entire life of the mortgage.

Whatever you do don't accept losing your tracker.  

I think I heard on the radio recently that banks are to be banned from taking trackers(on your PPR) off people who fall into difficulties.


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## tosullivan (26 Jul 2010)

what happens if i fall outside the LTV? When i signed up for it, it was for the ltv between 50-80%. Its now above this since the house value has decreased. Obviously i'll not be forthciming to the bank with this info.


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## DonKing (31 Jul 2010)

You would need to look at the small print of your contract. If it doesn't explicitly state that if at any future time the value of the property drops and the LTV increase above 80% then I believe you should be in a good position.  

I don't have any written contracts(other than the original variable rate contracts). Both Banks switched me to trackers when I started the process of changing my mortgages over to Halifax. It was all verbal with very little written done, which seems to have strenghtened my position.

Whatever your contract states I would resist any attempt by the bank to get you off the tracker when the interest only period ends. If they do try to get you onto standard rates then I would contact the Finacial Regulator.


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## Anne 1 (31 Jul 2010)

Forgive my ignorance but what 'LTV' stand for?


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## DonKing (2 Aug 2010)

Anne 1 said:


> Forgive my ignorance but what 'LTV' stand for?



LTV = "Loan To Value".  The amount of outstanding mortgage compared to the current value of your house.


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