end of fixed term mortgage very worried help!

[asht]

My mortgage has come to the end of its fixed term and my new payment is going up by £230. I have tried to rearrange my mortgage and no one will touch me, obviously.

My IVA has only been running since Feb/March. I have contacted my IVA company and they are sending me a variation pack out. What does this mean? What does it entail? What will I need to provide? I think there is going to be another meeting set up with the creditors but they tell me if they dont agree then this can mean bankrupcy! Im very worried,,,help

[MelanieGiles]

What a shame that your IP did not investigate this before presenting your proposal, and identifying that your mortgage was due to come out of a fixed term period. Creditors will deem it to be strange that the IVA is failing so soon, and your IP is bound to have some difficult questions to answer.

A variation meeting, means that revised proposals are placed before creditors so that they can reconsider their position and decide whether to support reduced payments into the future. How much are you currently paying into your IVA?

[ashingtoon]

Thank you for your reply. We are currently paying £737 per month but thats with us not giving up our pensions when asked to, making up the additional(£100) out of our monthly expenditure.

[MelanieGiles]

Well at least you appear to have a little leeway with those payments going forward. You are now in the hands of your creditors again, and if I were one of them I would be very concerned that you are varying something so early which could have been avoided in the original presentation of your proposals - but this has to be balanced by the commerciality of accepting a lower return rather than the alternative of bankruptcy or a neverending DMP.

[ashingtoon]

We sent our IVA company all the paperwork should this not have been checked out by them at the beginning. Is this not their fault? We are having to go through another stressful time so soon and this could this have been avoided. They knew about it being fixed term and said just to ring up when it was up for renewal. I hope the leeway isnt our pension I suppose we did agree to give it up but just couldnt cancel when it came down to it after weve paid so much in. Will this look bad on us?

[plasticdaft]

Have you tried specialists for a new mortgage deal?? Someone posts on here who can often help those in IVA's?? Is it bright oak or something,someone will correct me.

[MelanieGiles]

I think that you should discuss this with your IP firm and invite their comments. Everyone knows that someone who has only just entered into an IVA is unlikely to get a better mortgage deal than offered by their existing lender.

Andrew Graveson of Brightoak is a mortgage specialist, but even he is not a miracle worker at the moment - but it is always worth a call to find out.

[c.j]

would this increase still happen if you stayed with the same company, i will in the same position in 18 months time and wondered if my company would arrange another fixed term mortgage or would they not want to know.

[plasticdaft]

Getting another mortgage approved by the underwriters would be the problem staying with your current company,even if you have paid on time for 5 years.

Testing times ahead for us all.

[CoverItAll]

Doesn't your present mortgage deed confirm that you can keep your mortgage with your present lender at the end of the fixed term at their Standard Variable Rate ?

I know this does not help at all with affordability, but underwriting would not be required.

[plasticdaft]

Mine does yes,I just meant if you were trying to move for a better deal.

[ashingtoon]

Hi, thanks for the support. My current lender wouldnt touch me for a remortgage/new deal as I am in an IVA. Other high street banks woudlnt touch me either. I think these are trying times with companies not wanting to lend to what they class as high risk. Funy really as they are more likely to get their dosh if you have an IVA.

[Julie]

Hi - are you on a repayment mortgage? If so could you switch to an interest only? Thats what we had to do when our fixed rate came to an end a few months ago.

[ashingtoon]

No I have an interest only mmortgage already. thanks for the suggestion though