Has anyone had any experience of changing their mortgage deal/rate withe the Halifax while in an Iva?
Are they sympathetic to people in an Iva? We've been with them for many years and have never missed any payments.
We were on interest only and this changed to SV rate about a year ago, as they said we can't stay on interest only for an indefinate period (not sure they said this because of Iva!)
I should also add that Lloyds TSB was oneof my main creditors..
Thanks in advance EP
Last edited by emptypockets on Sun Dec 01, 2013 4:49 pm, edited 1 time in total.
The change from interest only to repayment - is happening across most Banks,speak directly to the Halifax and see whats on offer - however as this may affect the amount you can pay into the IVA you will also need to speak to your IVA company
Halifax are doing a bit of an RBS it appears, but not on business, on some homebuyers that were on interest only, which are being converted back to standard SVR and then won't extend the term to make the payments affordable, under the guise of affordability which is just a contradiction. I hope the national papers pick up on this sooner rather than later and give them a right kicking.
My wife has 80% equity in the house and looked to extend the remaining three years to six when switched back to repayment ie half the payment it is now and they said no, as I couldn’t she couldn’t afford it, I know laughable so have to stay over the three years as is n pay double…words fail me
This is a timebomb which has been waiting to go off for the last five years or so - and anyone who is on an interest only mortgage ought to right now be looking at their finances and trying to plan for when their lenders require them to revert to repayment terms. This may well affect a lot of property owners who are already in IVAs, but may mean more people will be looking to enter into on in the New Year, as rising mortgages put more pressure onto the rest of the family finances.
I'm hoping to make an appointment in the new year (in branch). Looking at their webpage, they do a fixed rate for 2 years at 2.99%, so I could save around £180 a month.
This will be offset by the loss of rent from one of my sons, who will be moving out.
My mortgage is with the Halifax and about 2 years ago my tracker deal with them was ending.
I phoned the mortgage centre and was offered three fixed rate deals over 2,3 and 5 years at relatively reasonable rates (though not 2.99%), that would have increased my mortgage payment by different degrees.
I contacted my IVA case manager and gave him the information and he got back to me to tell me that I wouldn`t be able to take up any of the deals offered to me as they would impact on my IVA payment amount.
So, when my tracker deal ended I automatically reverted to the Halifax`s SVR (which is currently 3.99%) and my mortgage payment increased by around £30 per month, which was dealt with in my I&E at review time.
Good luck.
Last edited by Goosed on Tue Dec 24, 2013 3:41 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
I suppose there are two ways to look at this from the creditors point of view: Put the debtor on interest only which will increase the disposable income marginally, or allow the repayment to continue which would increase equity in the long run.
Do they put that much thought into it -- and which would pay off ??
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
It won't impact my payment amount, because the reduction will be counter-acted by my son moving out (a loss of £150 per month rent).
Good point Winterblues, although, when my mortgage payments increased, I was just told by my IP to fill out the IE sheet and explain that I would be receiving more in rent payments from son and lodger to cover it. They never said anything about us remaining in interest only (it wasn't an option anyway!)
