Hi,
I few years ago I switched to a tracker. I currently have a mortgage of about 168k with about 28years left @ +0.65%
Houses like mine were selling for 750k a few years ago. When I switched to the tracker my LTV was therefore very low. I think there was a sliding scale and mine was <50% so I got something like +.5% for 1 year and +.65% thereafter, or something similar.
If I assume that house prices will drop 50% or a bit more then I guess my house might be worth 350ish at some point.
That is very close to have an LTV of >= 50%.
I'm worried if I cross the 50% line that they will be able to take it off me. Is this likely?
I can start paying the mortgage down a bit, but not by massive amounts as I want to build up some cash savings.
Should I be concerned enough to forget about the cash savings and start paying the tracker down, even though it is "cheap money"?
Thanks.
I few years ago I switched to a tracker. I currently have a mortgage of about 168k with about 28years left @ +0.65%
Houses like mine were selling for 750k a few years ago. When I switched to the tracker my LTV was therefore very low. I think there was a sliding scale and mine was <50% so I got something like +.5% for 1 year and +.65% thereafter, or something similar.
If I assume that house prices will drop 50% or a bit more then I guess my house might be worth 350ish at some point.
That is very close to have an LTV of >= 50%.
I'm worried if I cross the 50% line that they will be able to take it off me. Is this likely?
I can start paying the mortgage down a bit, but not by massive amounts as I want to build up some cash savings.
Should I be concerned enough to forget about the cash savings and start paying the tracker down, even though it is "cheap money"?
Thanks.