Property Crash voids Tracker LTV interest rate

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BorrowerMad

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Could anyone please tell me what the effect would be if you were on a 80% LTV tracker with an rate of 0.5 above ECB and the property crash revalued by house at 90% LTV. Would the tracker be void and new interest rate terms applied.
This is a definite possiblity with house prices returning to 2004 values
 
The conditions for my NIB LTV tracker state:

In the event that your LTV increases above 80% at any time during 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).

From this it would appear NIB anyway have the right to transfer you to their standard variable or a fixed rate if your LTV rate goes over 80%
 
When did you take out your NIB Tracker? Sounds like terms that were introduced recently...
 
Does it mention when this comes into play?

Can they change the LTV without an 'independent' valuation? Can the bank request a new valuation without your approval/permission? How often can they revalue - when they choose or on a scheduled basis? Who pays for the valuation?
 
Its late 2006. It does not address any of these issues, it simply states what I posted.

It only goes into detail if I want to renegotiate a lower LTV rate, no default can have occurred, I can only do so after 3 years, I must supply a valuation at my expense.
 
This might be of interest to some from todays Business Post.

[broken link removed]
 
sbp article said:
Kevin Gallen, deputy chief executive of NIB, said the bank would not seek to revisit the margin on existing mortgages if a customer’s LTV increased.
Click to expand...

If KG is to be taken at his word then NIB do not intend rervisiting the margin on existing [tracker] mortgages.

[tracker] the italics are mine so it would be worth checking with the bank whether the tiered [tracker] mortgages will not be revisited.

What happens when in reverse a customer makes a capital lump sum rerpayment? Does NIB revisit the rates and apply the lower margin to the now lower LTV band?
 
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