For those that may well be in negative equity right now do you think that the bank will keeps reassessing the LTV, ie. going to 100% and above, and increase the interest rate on the mortgage accordingly - a so-called double whammy? Are they within their rights and are there any special rates they can apply to above 100% LTV?
Interesting question Dan becuase we in Ireland have never been there before.
It will certainly affect their ability to remortgage , a 105% or 125% mortgage is a non non.
I could see banks with a lot of these 100% IO mortgages increasing their standard variable rates hugely as the punters came off their fixes…and refusing them new fixes etc.
Are banks entitled to make margin calls on these types of loans? That is are you required to maintain a certain max LTV?
Is there a difference in this instance between homes and commercial properties?
Fixes… sounds like another industries messing by using a very vunerable segment of the populaiton whom are highly strung out for their fix as a battering ram proxy against teh state. Ah the new Ireland where we use th poxy poor as proxy bate for pissy power games to see who can continue to rip off the tax payer hardest & longest.
So LTV, I see a lot of ads for LTV products of late, before recently this would not have been the typical product on offer no?