Could i lose tracker - self build

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kckc123

Guest
Hi everyone I'm a long time reader first time poster.

Ok here it goes we are nearing the end of our very long self build and on completion (we have to get a final valuation) we can drawn down a final 12k which we need for finishing the house, furniture and other essentials.

I'm not at all financial savy and I'm starting to worry that we will not be able to draw down final payment but even more worried that somehow the bank (ptsb) could force us off our tracker.

Here are some details;

Our Letter of Approval - Particulars of Mortgage Loan (2007) statues that the "Estimated Value" of our property was 475K obviously this is not the case and the value would be more like 300K-350K (that is just a guess - house is 3,700sq ft on 1.5 acre site, with detached two storey granny flat/garage - house finished to a high standard).

Our loan type is a "Disc tracker (Ltv <80%/<500K) Home Loan" and the LTV stated on the particulars states our LTV is 74%. I have read through the letter of approval and conditions and can't see any specific condition re LTV but i don't really know what i'm looking for.

I'm hoping someone can give me some advice on whether the bank can force us off our tracker now that our property is worth less than expected. Our mortgage was 350K.
 
I think you're worrying unnecessarily. Unless PTSB have made some specific effort already to get you off your tracker, they are not likely to try now, and most likely they would not be entitled to try. The drop in value of all property has so far not resulted in any reports of banks looking to change the terms due to an altered LTV position. Both journalists and experts (indeed on this forum) have looked for anyone who's encountered such a situation, and so far, I haven't seen any of them come back with stories of people experiencing this.

The letter of approval you got is a relevant document, as it sets expectations, but the real document to read for the final word on this is your mortgage contract. It'll not be easy to read, especially if you don't feel financially savy as you say.

But for what it's worth, I think you'll be fine! Good luck with the completion, and enjoy what sounds like a beautiful new home.
 
Thanks i am a worrier by nature and I just had nightmares thinking of when they send valuer out and it's worth less than expected at the present time would it cause alarm bells for them.
 
Hopefully you'll shortly be very busy with snag lists, etc., but if you ge the chance, pop an update when you get your valuation/cheque, to keep others informed of any things you think might be worth knowing about the process.
 
I certainly will, this is such a fantastic source of info and would only be too happy to contribute. As for snag list i don't think so seeing as its being build by my lovely OH ;-)
 
kckc123 said:
Ok here it goes we are nearing the end of our very long self build and on completion (we have to get a final valuation)

Our loan type is a "Disc tracker (Ltv <80%/<500K) Home Loan"
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Click to expand...

Your T&c’s state your LTV must be <80% to avail of this tracker rate, I would think very carefully before submitting a value that put you > 80%.

It’s true to date anyway banks have not tried remove trackers for this reason but I think your case could be different in that you have yet to submit a valuation.

It might not be an issue, but if it is could you do without the final €12K, borrow from relatives, anything that would keep your LTV < 80% would be better than risking your tracker.

Good luck.
 
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