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BTL and margin calls - another look
mystic_trev
Posts: 5,434 Forumite
I know we've discussed this before, and think we came to the conclusion it couldn't happen unless the mortgage was switched to a new Lender. I've just been having a nose at HPC site and they think differently.
http://www.housepricecrash.co.uk/forum/index.php?showtopic=74469&st=0
No doubt squatnow will be along shortly :rotfl:
The clauses we reviewed in the Mortgage Express (B&B), UCB (Nationwide), GMAC and Edeus BTL contracts very clearly allow requests for top-ups to the deposit to return to the original LTV.
http://www.housepricecrash.co.uk/forum/index.php?showtopic=74469&st=0
No doubt squatnow will be along shortly :rotfl:
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Comments
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Intresting post on HPC Thanks. Trev
"Many lenders have also cut the maximum amounts they will lend on new-build properties, to as little as 50 per cent LTV in some cases. The prices of new-builds, often sold for inflated sums, have fallen sharply in many cities and towns, pushing some owners into negative equity"
Wow!!!. Together with BTL margin calls, This has the makings of a paradigm shift.
I predict riots!!0 -
mystic_trev wrote: »I know we've discussed this before, and think we came to the conclusion it couldn't happen unless the mortgage was switched to a new Lender. I've just been having a nose at HPC site and they think differently.
http://www.housepricecrash.co.uk/forum/index.php?showtopic=74469&st=0
No doubt squatnow will be along shortly :rotfl:
I don't know if you've looked but I just had a squizz at UCB's T&Cs and I can't see anything that looks to me like a margin call in there:
Link
I couldn't be bothered to look through the others. I wonder if this is one of those internet 'factoids'.0 -
Do they have a copy of a mortgage deed with these conditions on? What they might be confused with is that mortgage express had a product which revalued automatically on anniversary date and you could withdraw equity if the property you had bought gained enough value. I think it was aimed at portfolios rather than single BTL mortgages. The faq's on the mortgage express site used to mention that if the property dropped in value they wouldn't ask for it back generally but I can't find that online anymore.
The link on their site points to conditions of 2004 which is obviously rather out of date.0 -
No, it can happen at the end of a fixed or discounted period with the same lender was my reading. Quote:Borrowers who took advantage of the 90 per cent buy-to-let loans introduced from mid-2006, are among those most at risk. Some have their remortgage date fast approaching.mystic_trev wrote: »I know we've discussed this before, and think we came to the conclusion it couldn't happen unless the mortgage was switched to a new Lender.
Why do they have to re-mortgage? Surely the mortgage is written to switch to a SVR or SVR + some ?
I'd be more worried about lenders looking at the rent : mortgage interest ratio which will be written in their T&Cs. If some lender wants to tighten lending, increase rates and lose the more iffy loans then setting a few minions on checking the landlord is getting the necessary rent to cover the mortgage would prove worthwhile, I suspect.A house isn't a home without a cat.
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It's a recession when your neighbour loses his job; it's a depression when you lose yours.0
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