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munimula

Will Banks Cutting Ltv Mortgage Criteria Make

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Mortgages for up to 95% are also disappearing fast. Alliance & Leicester, West Bromwich, Britannia and Barnsley building societies have all reduced the maximum they will lend from 95% to 90% of the value of the property.

With the gradual tightening of lending by the banks I was wondering if anyone knows whether at the expiry of a mortgage deal, the bank will require a borrower to inject cash if the max LTV mortgage they offer has reduced so that the borrower no longer has enough equity for the mortgage products available?

The cyclical pattern is fast becoming apparent. More and more people simply aren't going to be able to move when fixed deals expire. There are going to be a lot of people paying penal SVRs over the next few years. Be interesting to see how many can afford them...and the sad thing is that SVRs represent the average longterm interest rate...hardly high

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My opinion;

If it's your only property and you live in it - No

All other cases - Abso-feckin-lutely before all the other lenders try to beat them to it

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Are margin calls actually legal in the UK? I've never heard of one being made. Mind you BTL didn't existing during the last crash.

My feeling is that if the borrower is making all due payments on time they'll be left alone. Far better for the lender not to rock the boat and just take the money - I mean they might find they say, cough up £20K, and find they get the keys thrown at them.

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Are margin calls actually legal in the UK? I've never heard of one being made. Mind you BTL didn't existing during the last crash.

We had a thread up here a while ago with links to 4 mortgage standard Ts & Cs and there's several clauses in them that could be considered a "margin call" clause.

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  • 297 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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