Thanks Corey.

“rather than being shunted around 18 yr old junior assistants!”

That’s the crux of the matter right there!

Thanks David, i’ll pass your details on (this is not my property).

Thanks Benny, some interesting options there i can look into. Stay tuned for the next update.

Just some more musings which were running through my head last night…

It has been immensely helpful for me in scrolling through the forums to see some real world examples, and hopefully as i progress i can also add to the knowledge bank with my experiences regarding uncrossing loans.

However, i’m putting forward this situation, hopefully helpful to further unpack cross-coll loans using my situation.

Here is the situation again:

Property A: PPOR
Est. Value: 700,000
Outstanding: 275,000
LVR: 39.25%

Property B (crossed with A): Investment 1
Est. Value: 800,000
Outstanding: 800,000
LVR: 100%

Now i’m all for uncrossing, this is just a hypothetical.

From the bank’s perspective:

Property A & B:
Est. Value: 1,500,000
Outstanding: 1,075,000
Combined LVR: 71.67%

Therefore, if $100,000 (random figure) was split and removed from Property A, the value of the outstanding amount would still fall under 80% LVR.

Property A & B:
Est. Value: 1,500,000
Outstanding: 1,175,000
Combined LVR: 78.33%

In everyone’s experience would this be a realistic outcome? that is, would lenders be happy with this? (assuming serviceability, etc. is all OK).

I’m all for uncrossing, but that might affect the 50:50 spilt of Property B. My partner has her own investment property too and she is happy with the present situation, but not against uncrossing..

Anyway, any advice/comments/thoughts/etc. always appreciated!

Thanks very much for your time Richard.

Well, everyone needs to learn a lesson at some time! i’ll never cross-coll again…

I think i assumed i could still draw equity on the PPOR and leave both properties crossed, then take that equity into an independent loan.

I’m guessing that to uncross would either require a wait until the equity builds up to an acceptable level, or a re-structuring/re-drawing of the loan involving a split, etc.

In any case, i should probably see what my broker has to say.

Thanks!