could IVA cause problems with my mortgage?

[robbie.l]

Hi

If I was looking at doing an IVA can this cause problems with my mortgage? Could we loose our home? Could we be forced to sell or could they reprocess the house.

Many thanks

[kallis3]

Hi Robbie and welcome to the forum. The only problem we had with our mortgage was that when they were told about our IVA (which they took to be bankruptcy - don't think they read past that), they immediately took it upon themselves to do a drive by valuation to protect their interest and charged us £65 for doing it! We are still trying to sort that out.

I take it you are not in arrears with your mortgage?

[Viki.W]

Hi Robbie, welcome to the forum, you are in the right place for advice. An expert will be along shortly to advise you. In an IVA it is usual that you will have to release equity in year four but please wait for an expert to explain everything to you. Have you already approached an Insolvency Practitioner? It may help if you post a little bit more about your situation and also how much equity you think you may have in your home now. Good luck, hang in there. Viki

[facingittogether]

hi robbie and welcome!

we had our iva approved on 28th april and we have had no problem with our mortgage!

we have got a clause whereby we have to try to re mortgage in year 5 to release equity up to 85% of the property value! our iva is for 6 years as northern rock is one of our creditors!

i am not an expert and everyones circumstances are different - you would probably be best speaking to a ip to get some advice. our ip is melanie giles who posts on here and i can honestly say she has been brilliant!

wishing you the best of luck!

love barb x

[Lisa2009]

There should be no problem with your mortgage, providing its up to date.
You wont lose your home although you may be required to release some of the equity at some point during the term of the IVA, for the benefit of your creditors.
It is highly unlikely you would be forced to sell.

[MelanieGiles]

As a mortgage is a secured loan, then it should not be affected by your IVA but you will need to ensure that you can afford the mortgage payments into the future - especially if you have a fixed rate term which is due to expire over the next five years.

[Andrew Graveson]

Melanie's point is very relevant and topical.

There are very few lenders offering mortgages to those in IVA's right now.

If an IVA is only affordable because you are benefiting from a cheap deal currently you need to weigh up whether it will still be viable if your mortgage moves onto the lenders standard variable rate in the future.