Members may have read in the FT recently that lenders have started to react badly towards borrowers whose portfolios have dropped in value and are now below the original Loan To Value threshold of their mortgage. Wealthy borrowers are being directly targeted - and with massive amounts. I have mentioned this as a likely scenario several times and hopefully those who took heed of my warnings will have upped their mortgage payments some time ago to take account of it.

Nat West have already asked one investor in London with a £5m property portfolio to compensate the bank with £1m in cash within a month, to offset the 20 per cent fall in his portfolio's value. HSBC seem to be following suit, quoted as saying that if maximum loan-to-value percentages are exceeded 'we are likely to require that the position is brought back within covenant.' In other words, we want compensating. It may be a good time to read the small print of your buy-to-let mortgage agreement with a magnifying glass ... and if you find you are in danger of falling below the LTV threshold due to diminishing values AND the lender has a clause stating it can claim against you for any fall, it may be worth applying that 'rainy day' money.

Has anyone been contacted by their bank or building society on this subject? It may be useful to find out which additional lenders are following the Nat West and HSBC route.