We are currently 6 months into our IVA and have been pleased with how things have been going, however the news about Bradford and Bingley could cause us a problem.
Our mortgage is with Mortgage Express owned by B&B, and they have been great with us and told us to call 3 months prior to fixed rate expiry for a new deal. That should be this Wednesday. I called them today and they didnt have any deals and dont know whats happening.
If the press are anything to go by, we could have a problem here. They expect that the treasury wont want to keep the mortgage business so in effect wont be offering competative deals, forcing people to go elsewhere. But where else can those of us in an IVA currently go? No-one will want to touch us at the moment.
When our deal expires we will go onto the variable rate currently at 7%, which in our case means a £270 pm increase which we simply cant afford.
The £30k equity we had in our house at the start of the year has slowly disolved. I suspect we have maybe £5k equity, thats if it even sold. The local market it appauling to be honest.
So this has got me thinking that at some point we may have to go for voountary bankruptcy, but we so dont want to loose our home.
Does anyone know about the beneficial interest and how this works? Could this help us keep our home.
I'm not sure exactly how it works, but I will bump this back up so that one of the technical experts can see it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
If you both go bankrupt and there is negative equity in your property then it is possible for you to keep it and then pay a nominal sum to the OR after your discharge. However, the situation as you describe it is marginal. Given that the OR/Trustee has 3 years before having to deal with the house, if prices go back up in that time you may find yourself with the problem of being unable to raise the money to buy out the Trustees interest.
I would discuss the situation with your Supervisor. We all have clients who are facing the very same situation as you are and I am sure the vast majority of us will be happier to try and help you make your IVAs work than see them fail.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
I think with mortgage competition dwindling, all interest rates on remorgage deals will be prohibitive unless you have a perfect credit record. Things are now worse than a month ago...so much for the bottoming out(crisis over) theory...as the current BB outstanding mortgages are now in effect now property of the treasury, like nationalised NR they will aim to shrink that loan book and may tell people to go elsewhere for a new deal as the Rock did or back to the dreaded standard deal...all up in the air. BB have 50 billion of BTL and other Home loans out there exposed to the ravage of the crunch. NR had 100 billion
"DEbt is all in the mind. Think wealth and you'll be wealthy but not in £££"
Hey Flowerpot, really sorry you have this added worry. If you're getting nowhere with them you could always try Andrew Graveson from www.brightoak.co.uk There might be a deal out there for you. Speak to your IP as soon as possible. You're with Melanie aren't you? X
Given that there appears a market wide problem with remortgaging isnt it about time we saw a drop in the standard rate(or is that too simple),with the government trying to force lenders to lower there standard rates accordingly,surely this would boost confidence in the market.
Discharged today the 8th feb 2012. View is much brighter now.
Continuing to rebuild our credit worthiness.
We're with cleardebt. I will contact them but I keep trying to figure out a plan without having needing help. I suppose trying to be too independant really.
My husband and I have held a mortgage with one company or another for over 13 years now, but in the past umpteen years while the banks have led us all down the path of false prosperity, we've made a few really bad decisions which have landed us where we are now!
As Ian has already said, IPs have to look at clients with high mortgage payment rises sensibly, given the current state of the market. Most of us do try to deal with potential interest rate jumps from the outset of preparing the proposals, but I don't think anyone really expected the credit crunch to be so harmful to the domestic mortgage marketplace.
It will do no harm for flowerpot to talk to Andrew but I suspect he will have some difficulty finding a mortgage for her given the equity situation.
Frankly what is happening now would probably not have dawned on anybody (you or the creditors) at the time of entering your IVA. The devil is in the detail of course, but if a variation to the IVA can be hammered out it may well be in your interests to investigate it.
I note you are with cleardebt. Can I suggest you get hold of Michael (size 5) to discuss and see if he can help you? Would you like me to alert him to this thread?
Ian
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Yes please that would be useful, I havnt seen size 5 on the forum recently when I've been on.
Also, if bankruptcy is the only option and if our home was in negative equity and we bought the beneficial interest, is the mortgage repayment allowed in the i&e?
If there is negative equity then I can't see the OR getting too steamed up about the ongoing payments (unless they are extreme). However, be aware that under S338 Insolvency Act 1986 you won't acquire any interest by continuing to make the mortgage payments. You will simply be protecting the position of the trustee. So there is the potential for double jeopardy i.e you maintain the mortgage and equity arises and you are unable to raise the money to pay out the trustee (unless you have some willing relatives!). The logic there is that to buy out the trustee assuming there is equity would require a 100% remortgage which I don't believe anybody would get nowadays.
Suffice to say that bankruptcy has the potential to complicate things a bit.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Thanks for the e mail Ian. Flowerpot, I have alerted the post IVA team to this thread as well. I haven't posted much for a while as you rightly say, save for the odd one here and there, I am hoping to log on a little more this week if I can.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
Flowerpot, I think we have identified who you are but we obviously need to confirm this. Could I ask you to call the main office number and ask for Cheryl? Alternatively you can e mail me directly offline if you wish, if you ask Andy for my direct e mail address I am sure he will give it to you.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
CAN YOU PLEASE HELP WHAT IS AN EXTREME MORTGAGE PAYMENT. MY HOUSE IS IN NEGATIVE EQUITY AND MY MORTGAGE PAYMENT AMMOUNTS TO AROUND 40% OF MY INCOME I AM HOPING THAT IF I GO BANKRUPT THIS WILL BE ALRIGHT I AM IN NEGATIVE EQUITY TO THE TUNE OF ABOUT £6000.
