Firstly apologies if this query has been asked before but I have done a search and could not find a full answer
We have a tracker mortage with First Active (now Ulster) that states "lifetime tracker ECB + x% for term 80% LTV", also states "as the ltv is less than or equal to 80% but the rate of interst will never be higher than ECB rate + x%".
LTV is in excess of 80% now - prob >150% due to negative equity - am I at risk of losing the tracker?
I expect the bank could in principle ask the house owner to provide a new valuation and adjust the tracker rate accordingly, and I am surprised they haven't tried this already. I doubt there is a clause explicitly ruling it out. It would be an extremely unpopular move.
for those credit agreements where it mentions specific LTV then the bank may come to a decision to review the LTV condition being met. For those such as DME they have no issue. I know the NIB LTV product actually specifies that if the LTV goes above 80% in the life of the mortgage then the contract is in breach. I've never heard of them looking to use this though... maybe they have and we just haven't heard of it, which seems unlikely.
If they try this I am in no doubt that mortgage holders will fight it. Plus they should\will withdraw all their deposits from NIB and take their custom elsewhere.
I can't see how they'd insist on getting new valuation, given there's no provision for it in the agreement.
Do they need a new valuation? I don’t think so. You provided NIB with a valuation on your home when you got your LTV Tracker, using the above statistics or similar, they know your LTV today.
I don’t believe they’d have much of a leg to stand on if they suddenly switched to using some other method.
The LTV is based on a valuation that we both agreed to at the time the mortgage was taken out.
Not really though, it was an independent valuation carried out by usually an auctioneer.
It was 'independent' ...BUT (and i'm open to correction on this - as my recollection is not 100% clear) from what I can remember, only NIB approved valuers could be used? ...was that not the case - and if so, does that not have a bearing on things?Not really though, it was an independent valuation carried out by usually an auctioneer.
I can't see how at the very least, they could pull it off without having a valuation carried out. Afterall, they would only accept clients on their LTV mortgage deals on the basis of a valuation having been carried out by someone from their panel of valuers.Even if the Ombudsman was to insist on an independent valuation at NIB’s expense
True - although it does help to fudge the issue - and make things a little bit more complex for them.The cost and administrative hassle would be nothing compared to the probably tens of thousands of Euros NIB would gain over the remaining life of a typical mortgage.
For sure - and on that basis, I'd welcome any insight anyone reading this may have on how NIB tracker holders can protect themselves from such a potential threat. In the worst case scenario, is it possible for the client to retain the tracker by making a one-off capital payment against the mortgage to bring the LTV ratio back in line with a new revised valuation?I don’t think the above scenario can be ruled out.
. In the worst case scenario, is it possible for the client to retain the tracker by making a one-off capital payment against the mortgage to bring the LTV ratio back in line with a new revised valuation?
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