View Single Post
  #2  
Old 27.06.2011, 11:56
fatmanfilms's Avatar
fatmanfilms fatmanfilms is offline
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,376
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Swiss Mortgage Margin Calls

Quote:
View Post
I heard that in the past, Swiss banks made margin calls on home-owners claiming that the value of the house was insufficient. Does anyone have experience of this and how much they re-valued the property downwards?

I was wondering if this was just a licence to cancel your mortgage. e.g. if you have a 10 year fixed rate mortgage and the IRs rise, then could the banks then say that the value of your property has decreased and so you need to pay down more of your mortgage.

At best, this reduces the benefit of having the low fixed rate and at worst leaves you in default if you can't find the additional capital?
Seems very odd, that the Value should be effected by a high interest rate, which would indicate highj inflation.
Swiss do depreciate buildings 1% a year which could produce a shortfall over time. Land prices did fall in the 90's so it's possible
Reply With Quote