Anecdotal - UK Banks making mortgage margin calls

I’ve been hearing this weekend about people in the North who bought at the peak, who have started to receive “margin call” letters from the bank saying that the bank has re-assessed the value of their home, the LTV is no longer acceptable, and demanding an immediate infusion of cash into the mortgage account to restore minimum LTVs.

The obvious questions for the Pin are: did any (or all) mortgage lenders in the South have such minimum LTV clauses in their mortgage contracts? And if so, have any of them actually activated the clauses yet? And lastly, if the clauses exist and they have not yet been activated, are they ever likely to be?

Just wondering if this is likely to be a feature of the southern crash as we move out of Denial?


If this happens, it will only accelerate the deterioration.

If this is the case it would seem the VIs will have another problem to content with re-inflaing the bubble and it’ll make mincemeat out of the SF adverts in the vested broadsheets.

Don’t think minimum LTV’s are a huge chunk of the mortgage market here, so while it’ll be a problem for some, it’s not going to affect big numbers.

Very interested in this sidewinder – can you advise if this was BTL mortgages or residential. I thought this margin call clause was only on BTL mortgages.

I believe these mainly affect buy to let mortgages, but I’m sure there are top up mortgages (MEW) that have LTV conditions in them as well. They may use them to get out of the loss making tracker mortgages.

I don’t know the details, it’s just anecdotal family chat. Could even be a wild rumour for all I know. I was wondering if everyone hear had heard of such a thing, if they really existed etc. It seems that they do, but mostly for BTL/MEW. Interesting. I’ll see if I can dig up something more solid!

26 Counties, Eire or the Republic of Ireland I believe is the entity you are referring to.

To answer the question I am pretty sure there is no LTV clause in my mortgage.

Chill dude!!
“The South” is perfectly acceptable to distinguish it from “the North”.
We’ve two jurisdictions on this island. Everyone recognises these terms to distinguish them, and when talking about things like finance, contract law (and property), it’s important to make the distinction (and I’m from “the South”).

And to the original question, there was a small bit of chat about this over a year ago here. But no-one could point out anything concrete - just rumours, mainly from the USA.

As someone from Connacht living in Leinster, I feel excluded…


Ach, ignore edge. He has a personal problem with me and can’t resist making the odd whinge in my direction shrugs Don’t let it derail the thread.

So it could all just be panicked rumourmongering? I’ll do a bit of digging, and see if anyone can actually point to an actual, named, individual; or whether it’s just all “a woman in the shop told me that her sister’s husband’s cousin’s next-door neighbour’s dog…” blether.

I was told some years back that the the wording of IIB and of Ulster tracker contracts could lead to precisely such margin calls and that high LTV borrowers would have been best to avoid them for that reason .

I am unaware of what conditions were for the others.