anti competitive regulations led by central bank..?

S

stuartK

Registered User
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Like many others i am on a high SVR, with KBC and it's currently 4.5%. I am just out of negative equity (having bought in 2008), AIB and UlsterBank are offering significantly lower rates as part of a switching deal (3.6%) but I found out today that due to the central bank restrictions on lending i am limited to a maximum of 80% LTV. (i.e. a 20% deposit for switching which i don't have because my property took a nose dive in value and with USC, property tax etc my ability to save has been greatly restricted)

introducing this restriction on lending has a detrimental impact on people who want to switch and it effectively eliminates entirely any form of competition from the market place for mortgage switching..

is there any way around this? are these anti competitive restrictions legal?

any advice welcome..
 
In practice I don't believe any lender would refinance an existing mortgage if there was less than 20% positive equity in the property.

To be honest, I think your concern with the CBI restrictions might be more theoretical than real.
 
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