End of fixed rate mortgage

[kahlan]

Hi, just a quick question. I'm almost a year into my IVA and am starting to struggle (just come out of a fixed rate mortgage) am trying to change my mortgage to an interest only. If this fails can I go BR and still keep my flat? (I've currently no equity tied up in it)

[Oliver]

If there is no equity in your property, in bankruptcy you would likely be able to buy back the ownership of the property for a nominal fee (sometimes as little as £1 plus legal costs).

Best Regards
Oliver

Thomas Charles and Co Ltd.
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[kahlan]

Thankyou for your quick response. Is this something that is done quite regulary and should I discuss this with my IP?

[mikebdomain]

If you currently have a repayment mortgage switching to interest only with your current lender should not be a problem.

It maybe worthwhile however, investigating the possibility of switching mortgage products and going with another lender on a cheaper new fixed rate. Best bet is to find a reputable mortgage broker and discuss your options. You will more than likely be able to save the money you are looking for with a new lower fixed rate.

You will need the permission of your IP before you can remortgage, but this shouldn't be a problem.

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[Oliver]

A potential change in your mortgage payment should really be budgeted for by your IP at the initial stages of your proposal. I am confident that you will be able to get a new product applied to your mortgage which will reduce the interest applied. Have you contacted your current lender about this? Failing that switching to an interest only mortgage should be a relatively simple procedure with your current lender.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[kahlan]

I am currently awaiting approval from my ip, then i can contact my mortgage lender to see if i can change (which they said would be a charge for).

Buying back ownership on the property - does this affect my mortgage rights in anyway. Sorry, would just like to explore all options.

Thanks again!

[mikebdomain]

Under bankruptcy, if you own your house, either solely or jointly, your interest (ownership) will pass to the Official Receiver or Trustee. Unless you can afford to buy it back, eventually the house will have to be sold, this will be by Court order if you don't agree to do it voluntarily. You get given one year's grace during which time you can continue to live in your house as long as you continue to pay the mortgage, then after that year's up either you buy back the Official Receiver's interest or the house will have to be sold.

The charge to change yor existing mortgage product from repayment to interest only should be minimal.

FREE ADVICE IS THE BEST ADVICE

Mortgage Broker
Specialising in adverse credit.

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