Any views

[hara]

As I have mentioned before I am contemplating a F&F.

As My mortgage is coming out of fixed rate I may have to pay 400 to 500 in additional payments.I have not explored the possibility as yet from my existing barrower as there is a widely held view that Interest rates might fall over the coming months and even a talk of them falling to 4%.

Hence I may wait for a month or two before seeking a deal.

My IVA started in JULY,so far I have paid about 6000 pounds,I am paying 1000 pounds a month. Total payment being about 70000 pounds over 5 years. Ther is 4th year equity release clause but it also says that IVA can conclude with remortgage,so it may all end in 4 Years than 5 as I understand.

I have two sons who have agreed to help me with F$F.
I have had a word with my regular contact at the firm representating me about releasing equity now by selling property and releasing equity for F$F.

Once we sold this property we are going to buy one of a lesser value(down sizing).

Though the full picture is not yet quite clear,I have a fair idea of what is probable.

I am thinking of proposing a reduced payment of 500 pounds a month for the next 12 months and a lump sum payment of 48000 pounds at the end of 12 months to conclude IVA.

The monies for F$F would be obtained by either a combination of sale of house and help from my two sons or soley by help from my sons if the property does not fetch much.( I am saying this as I see that propert prices are faling).

Thanks.
hara.

[MelanieGiles]

Anything is possible Hara, if you are struggling to make the IVA payments you agreed to in July 2007, but you really need to take your own IP's advice as they have specialist knowledge of your case.

If you are worried about falling interest rates, it may not be a good idea to tie yourself up into another fixed rate, so why not consider a variable or a tracker which will move with rate changes - of course that also means they will increase if interest rates go up as well.

[hara]

Dear Mrs,

Thanks for your swift and reassuring reply.

One thing about posting on this forum is that one can sure of a prompt reply from one of experts.

It is nice know that one can obtain a free advice and comments promptly from an IP though
one is not a client.
It is very kind and considerate of you.

I am reassured that the interest rates are falling and not worried.

Thanks.
Hara.

[Adam Davies]

Hi Hara
Good to hear from you again.
If your case manager fees that a full and final is possible then that is a step in the right direction.
With the possibility that house prices may fall your creditors may well prefer a lump sum now rather than later
Regards

[jpj]

Hi Hara
Im not sure waiting for more interest rate cuts are going to help too much now! (

Quote from The Times money section today
"borrowers could be better off with fixed rate even though some economists think interest rates could fall as low as 4.25% by the end of the year. Lenders have hiked trackers to such an extent that they are now much higher than equivalent fixed rates,and the bank rate would have to fall nearly a percentage point before you would be better off with some trackers"