How does this work? Our MB has explained that we will stay with the current lenders for my two IP'S but the new lender for the PPOR will ask for the investment properties as security for the new purchase. Once we have equity of at least 20% in PPOR, the bank can then remove the security relationship and then the PPOR is stand alone.
This is different to x-coll with one lender...does it just mean if we default on the PPOR that the IP is at risk too?
In what situation would this be something a bank would ask for?
This is different to x-coll with one lender...does it just mean if we default on the PPOR that the IP is at risk too?
In what situation would this be something a bank would ask for?