expenditure change

[leroy1970]

hi,
new to here and wish I'd found this site a year ago.
just reached the one year mark with dfd and now have a serious problem. Both myself and my wife have changed jobs recently although this has only affected our income slightly(decrease) but our expenditure has gone up considerably, the main ones being

maortgage - a three deal ending
additional borrowing - high interest rates
additional fuel costs- for my job which I now travel further for

the effect this has had is that our disposable income has gone down from £288 to £88 and now dfd are saying that we could be in breach or non conformance of our IVA.
we have no equity on the property, infact we have borrowed up to the 125% mark.
dfd didnt have any solutions for us until I suggested remortgaging to try and take in the high interest additional borrowing to reduce expenditure.
has anybody heard of any companies that will remortgage up to 125% or have any other advice.
I'm not sure what else I can do to stop the Iva failing

thanks
leroy

[Andrew Graveson]

Hi leroy,
I suspect that remortgaging to 125% will not be possible in the current mortgage market while in an IVA.
Other thoughts might be whether any part of the secured debts are on a repayment basis and whether they can be switched to an interest-only basis, or the repayment period extended. Please note that either of these options (if available) will have consequences and you should take no action without speaking to a mortgage broker first.

Andrew Graveson
Independent Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk

[mikebdomain]

Hi Leroy and welcome to the forum,

I am not aware of any mortgage products on the market that will allow borrowing of 125% for someone in a current IVA.

In the first instance; I would talk to your current mortgage lender to discuss your options. If for example you are on a repayment mortgage, they may switch it to interest only for a while to allow you to get back on your feet.

If you are already on an interest only mortgage, talk to your current mortgage lender about switching you back to a fixed rate product, which they may do, if you explain your circumstances.


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Specialising in adverse credit.

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[Adam Davies]

Hi Leroy
Your IVA will not be viable at £88 per month so you have to decide on the next step.
1]Bankruptcy.......as you have negative equity you could remain in the property and get a third party to purchase the ORs interest for £1 plus costs.You would have to continue with he secured payments in full.
2]Fail the IVA and revert to a Debt management plan
3]Somehow cut costs to the bone and continue with the IVA payments

I know which one I'd do and it's not 2 or 3

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

[mikebdomain]

If you are unable to reduce your secured debt payments, 1. sounds like the best option to me

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

Firm FSA No:313790
Personal FSA No:MJB01557

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[leroy1970]

thanks for the replies, seems I have a lot to think about. I have thought about bankrupcy but was unsure if we could stay in the property and still dont now enough at this stage to go down that route just yet.
I will be contacting our mortgage provider and see what options they can give us. as for reducing expenditure, the best we could reasonably come up with was another £50 a month, I still dont think that would be enough.

I do feel a bit let down by dfd because they didnt give us anything like the advice I've recieved on here. thanks again

leroy