Hi All
We have a great LTV tracker with NIB that is based on an 80% LTV.
Given the current state of the property market, out house has fallen in value to an extent where our real LTV, 15 months later is closer to 90% although we have not had a valuation.
My fear is that NIB could withdraw our current LTV rate and place us on a variable without notice or without giving us the chance to pay some capital off to keep the LTV at 80% and maintain the .59% tracker margin.
The terms we have from them on this indicate the following:
In the event that your LTV increases above 80% at any time during the term of your LTV mortgage, we reserve the right to convert your LTV rate to our then applicable home loan rate (fixed or variable as the case may be). Your LTV rate at the date of drawdown of your loan will be our LTV rate (fixed LTV or ECB tracker LTV as the case may be) applicable at that date.
I understand the principle here but need to understand if they can or will do this without any discussion with us. We could pay some capital off to maintain the LTV. If we, the borrower, wanted to renegotiate based on lower LTV, e.g. 60%, we would have to approach them with new evaluations etc. Is the same Onus on them if they feel the LTV is above 80%????
We have a great LTV tracker with NIB that is based on an 80% LTV.
Given the current state of the property market, out house has fallen in value to an extent where our real LTV, 15 months later is closer to 90% although we have not had a valuation.
My fear is that NIB could withdraw our current LTV rate and place us on a variable without notice or without giving us the chance to pay some capital off to keep the LTV at 80% and maintain the .59% tracker margin.
The terms we have from them on this indicate the following:
In the event that your LTV increases above 80% at any time during the term of your LTV mortgage, we reserve the right to convert your LTV rate to our then applicable home loan rate (fixed or variable as the case may be). Your LTV rate at the date of drawdown of your loan will be our LTV rate (fixed LTV or ECB tracker LTV as the case may be) applicable at that date.
I understand the principle here but need to understand if they can or will do this without any discussion with us. We could pay some capital off to maintain the LTV. If we, the borrower, wanted to renegotiate based on lower LTV, e.g. 60%, we would have to approach them with new evaluations etc. Is the same Onus on them if they feel the LTV is above 80%????