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Grayphil

60% Ltv In The Baltics

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Just wanted to ask a general question to the forum... today I went to apply for a housing loan in Latvia where I live most of the time... I thought i would be able to secure a housing loan against some of my existing equity in fully paid off properties...lets assume this is approx 150,000 euros...

I had a deposit of 20,000 Euros and thought it would be no real problem for me to ask for a loan of around 60,000 to buy another apartment which costs 80,000 Euros.

I was denied as I was told that new European banking regulations coming into force in March mean the maximum LTV will be 60% and no Guarantor mortgages can be accepted anymore...

After checking a few other banks that lend in Eastern Europe it seems that most are going to adopt this new LTV in march although i cant find much online about it...

Apologies about the long-winded story but the question I am going to ask is.. "what would the impact be upon house prices when lenders decide for self protection to only offer 60% LTV and no guarantor mortgages/ loans??"

Obviously i think downwards but does anyone have suggestions as to a time scale that this could happen over

Many thanks to anyone who takes the time to read and reply!!

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Just wanted to ask a general question to the forum... today I went to apply for a housing loan in Latvia where I live most of the time... I thought i would be able to secure a housing loan against some of my existing equity in fully paid off properties...lets assume this is approx 150,000 euros...

I had a deposit of 20,000 Euros and thought it would be no real problem for me to ask for a loan of around 60,000 to buy another apartment which costs 80,000 Euros.

I was denied as I was told that new European banking regulations coming into force in March mean the maximum LTV will be 60% and no Guarantor mortgages can be accepted anymore...

After checking a few other banks that lend in Eastern Europe it seems that most are going to adopt this new LTV in march although i cant find much online about it...

Apologies about the long-winded story but the question I am going to ask is.. "what would the impact be upon house prices when lenders decide for self protection to only offer 60% LTV and no guarantor mortgages/ loans??"

Obviously i think downwards but does anyone have suggestions as to a time scale that this could happen over

Many thanks to anyone who takes the time to read and reply!!

Did they fully understand that you owned the other property and it was not someone else that owned it ,as thats what i always thought a guarantor mortgage was ,a loan advanced using someone elses property/assets as collateral ,or am i wrong in thinking this?

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Yes they fully understood I owned the properties outright... one was actually an early repaid loan with the same bank... I originally wanted to apply for the loan as a regular mortgage... 20%ish deposit...thats when they told me it was now min 60%LTV and the banks would only accept money as asset as deposit and no form of property could be considered as an asset..... I was pretty surprised at this which is why I thought to post to HPC!!

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Yes they fully understood I owned the properties outright... one was actually an early repaid loan with the same bank... I originally wanted to apply for the loan as a regular mortgage... 20%ish deposit...thats when they told me it was now min 60%LTV and the banks would only accept money as asset as deposit and no form of property could be considered as an asset..... I was pretty surprised at this which is why I thought to post to HPC!!

This would be the end of BTL overnight, in the UK

Edited by long time lurking

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This would be the end of BTL overnight, in the UK

well I guess thats true... They also dont have BTL mortgages available... you can only lease when mortgage if fully paid off (legally)

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