In the UK, could a bank ask you to repay quicker a part of a mortgage (or a loan guaranteed with a property) because your risk profiles increases due to the value of property going below the loan-to-value?

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    Typically, a financial agreement such as a credit card or mortgage contract will contain the details of how or if the rate or terms can change. Have you read the agreement word for word? – JTP - Apologise to Monica Aug 6 '14 at 4:37
  • @JoeTaxpayer, this is a theoretical question. I am just curious whether it is possible or not. – Ion Ionascu Aug 6 '14 at 5:38
  • Check the terms and conditions booklet provided with your mortgage/loan. If it isn't mentioned then they cannot do it. And it is loan-to-value, not load. Or did I miss something. – DumbCoder Aug 6 '14 at 8:37
  • @DumbCoder - thx for typo alert, I edited that. See his comment, he just wants to know if possible, question is hypothetical, no contract to review. – JTP - Apologise to Monica Aug 6 '14 at 11:01

Yes they can, but not a part of the mortgage but the whole remaining sum. I am not so sure about loans, but I would believe they also might have the same.

This is from Halifax -> In some circumstances (normally where you break our agreement) we may require you to pay off everything you charge, and there are a number of steps we can take, such as taking possession of your property and selling or

  • Thank you. I am curious, could this also happen when the bank decides that the current value of the property falls too much under the unpaid amount of the loan/mortgage? – Ion Ionascu Aug 6 '14 at 12:30
  • @IonIonascu: Quite likely, in fact - if the house burns down, they'll probably claim the insurance money. – MSalters Aug 7 '14 at 17:02

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