Bank changing mortgage rates for existing customers

E

emoclew

Guest
I have a LTV Tracker Mortgage (LTV of < 60%) with a rate of ECB + 0.65 currently with my Bank. My question is
(1) could my bank increase the rate either due to a change in the LTV ratio (I assume that my LTV would now be > 60% due to the contraction in the housing mkt)? or (2) could the bank increase this rate otherwise for its exting customers?
Are existing customer protected from local (bank imposed increases) with tracker products which at the time of offer stated a guranteed rate of X% above the ECB rate?
 
I have a tracker mortgage with IIB. They can only use the rate you signed in at. I presume to prove that the LTV value may now have changed they would require a valuation so in my opinion unless you apply for a top up etc they cannot change the rate as per your contract.
 
Thanks remey - I suppose that this can be an upside to the rapid increase in house prices in the last two yrs. I'm sure if my hse was revalued now the LTV would be much less than 60% and I would not qualify for the better rates.
 
There have been a few threads on this. Some banks reserve the right to track another rate other than ECB, which may be higher than 4.0%.
 
rmelly said:
There have been a few threads on this. Some banks reserve the right to track another rate other than ECB, which may be higher than 4.0%.
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IIB reserve the right to move to euribor tracker in the event of it being over .25% higher than the ECB rate for more than one month.
 
emoclew said:
Thanks remey - I suppose that this can be an upside to the rapid increase in house prices in the last two yrs. I'm sure if my hse was revalued now the LTV would ne much less than 60% and I would not qualify for the better rates.
Click to expand...

Is that what you meant to say?
 
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