Can I move if I have an IVA

[beckym]

Can anyone help....
We have only recently entered into our IVA agreement and everything is going ok, however I have now found out and am 11 weeks pregnant.
We currently own our home and live in a 2 bedroom house and already have 2 children.

Our next door neighbours house is on the market for £170k (exactly the same as our house). Our mtg is currently approx £95k, our secured loan approx £35k and with paying back the IVA at 33p in £ we would be paying approx £27k

Can we either pay the IVA now??
Can we move to a cheaper location paying off our secured loan?

Any ideas????

I called the debt management company and was told the manager is on hols for 2 weeks so would have to wait until their return for any response??!!!!

Thanks[;)]

[MelanieGiles]

Hi beckym - and congratulations on the news! It is definately a week for baby announcements on the forum this week (Hope it is not catching!!!)

What were the provisions for equity release in your IBVA? Do you have to re-mortgage during the fourth or final year? If so, you could transport this provision to a newer property, if you need more space for your expanding family.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[Adam Davies]

Hi
Firstly congratulations !!
What was the provision in your IVA for equity release ?
Is it the standard 4th year release of 85 percent ?
You could pay your IVA off now but will have to pay your full debts 80k plus IP fees so this is not an option,at the moment.You could move to a cheaper area and pay off your secured loan but because your disposible income will be higher you will have to pay more into your IVA and will still have to surrender some equity in the final year.
Are you working at the moment ? and will your income reduce when your baby is born ?If so you will need to ask your IP to propose a variation meeting so that you can reduce payments.
My personal feeling is that you should carry on with your current IVA,reduce payments when baby is born an look to remortgage once you have sufficient equity to pay off your debts in full.
Have a chat with your IP when they return from holiday.
Regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[beckym]

Yes, in the 4th year we have to re mortgage as you have both suggested...my money will decrease slightly, however as I work in the evenings will only have my maternity leave as usual, so therefore should only decrease for a short period.
Our conditionas also state that no amendments can be made within the first two years??!!

[beckym]

Forgot to say thank you for your responses..two different opinions, at least this keeps our options open...
If we moved to a cheaper property and cleared the secured loan, we are obviously not going to get the best of rates due to our credit history...we have agreed to pay an aditional £187 starting from next year when our car finance finishes..As the mtg will be more, will we be expected to pay more also??
We are looking at properties of no more than £155k..do you think this is a good move, obviously we will look for short term fixed rate so that we are able to re mortgage again in the 4th year???

[MelanieGiles]

I think that you should explore all options and discuss matters with your IP when you can. In the meantime try and work out what your income and expenditure will be both through maternity leave and afterwards, to see if you will be able to maintain payments.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[beckym]

Can you suggest any mortgage lenders that would touch us considering the IVA so that we can discuss borrowing options??

[Adam Davies]

Hi
Contact Welsh Boy,he is a regular poster and a mortgage broker and has helped many on this site.
His contact email is
antony.parsons@btopenworld.com.
regards


Andy Davie
IVA.co.uk Spokesperson

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[beckym]

Thank you....another option we have been thinking about is selling and paying off mtg, secured loan and IVA and moving into rented to be completely debt free....
Have spoken with IVA people who have said that because IVA only started May may not be able to actually do anything as have to put reasons for wanting to sesll in a letter for creditor to agree (selling or moving option)...have been advised that they will probably not agree for us to sell at all....
Surely if they can get their monies earlier this through us going into rented accomodation this is good??[:0]

[MelanieGiles]

Your creditors will have to balance the benefits of receiving monies from the sale of your property now, rather than gambling on the property increasing in value over the next four years or so. I personally would have no problem in putting this forward for you, so long as your reasons were well justified, but it is a shame that this was not considered prior to the IVA being finalised in May.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[beckym]

Thank you for your advise....Unfortnately for us, I did not find out I was pregnant until we had sorted IVA..so as far as you are concerned should not be an issue to sell up for either renting or buying cheaply[8D]

I would certainly appreciate any help on offer as time is obviously not really on our side and it remains a concern about how we can go forward on this to make home life comfortable for our soon 3 children