# Can tracker rates be revised upwards due to the fall in the value of the house?



## tool (25 Jan 2012)

_Moderators' note - I have moved this post which was originally a reply to a 3 year old post_

I got a reduction on my tracker rate of ECB + 1.15% to 0.75% as I argued that the LTV rate was 80% during the boom. But now the market value of the house has dropped. Does this mean that UB (FA) can increase the tracker back up to 1.15% again. Or is it a permanent lower tracker rate which they have to comit to? Do you have it in writing?


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## tool (27 Jan 2012)

I am very concerned about this issue. Any opinion/experience/advice?


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## callybags (27 Jan 2012)

I don't know the answer, but am in the same position.

Keep your head down, keep up your payments and say nothing that might draw attention.


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## venice (27 Jan 2012)

Unless it states it in the contract which to the best of my knowledge it does not so I would think the answer is no.

Also there is no doubt that the banks themselves have looked into this and any other way of reneging on these contracts and would have enforced it by now if they could.


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## twofor1 (27 Jan 2012)

tool said:


> I got a reduction on my tracker rate of ECB + 1.15% to 0.75% as I argued that the LTV rate was 80% during the boom. But now the market value of the house has dropped. Does this mean that UB (FA) can increase the tracker back up to 1.15% again. Or is it a permanent lower tracker rate which they have to comit to? Do you have it in writing?


 

Do a search, this has been discussed previously.

I know my NIB LTV Tracker states they reserve the right to convert it to their standard rate if at any time the LTV increases above 80%. Possibly other lenders don’t have this clause.

It does not say how they would determine LTV at any given time, nor does it say they will definately do it.

Agree with callybags, keep your head down, keep up your payments (if possible) and say nothing that might draw attention.


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## theoneill (27 Jan 2012)

I'm surprised the banks haven't moved on this. I have been expecting a letter for the past 3 years. I'm sure if they felt they could do it according to their contracts they would have done so by now given the cost of trackers to them.


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## serotoninsid (27 Jan 2012)

If a more equitable household charge were to be introduced in the next couple of years ...i.e. one where there was a valuation put on a property - would this then make their (the banks) work easier????


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## venice (27 Jan 2012)

If its not in the contact then its just not in the contract...


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