have been on a DMP now for around 2 years

[e.h]

Hi rstewa

Me and my partner have been in an IVA for coming up to a year and would recommend you go this route rather than debt management. I was also in a debt management programme for a year previous to the IVA and I was getting nowhere. One of my main creditors is Northern Rock and I found them, out of all my creditors, to be the most reasonable, helpful and understanding of my position. Good luck!

Liz

[rstewa]

Technically i dont have 75k equity as we haven't had survey evaluation etc i only have the evaluation from 3 years ago at 200k.

The property is jointly owned by my wife and I.

I was seriously thinking about this as an option. But how would my current lender see this situation with my creditor with regards to additionally borrowing on the mortgage? I have no idea also how much the creditors would actually do a final settlement for.

btw. I have just received a letter from NR stating that if i don't commence with full payments they will seek to secure the debt against my property.

any advice?

[MelanieGiles]

You do not have to use your current lender for the purposes of re-mortgaging, and need to make a decision fairly soon or Northern Rock will get a charging order. I suggest that you seek advice from an Insolvency Practitioner without any further delay.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rstewa]

thanks Melanie

I have started the process with w3debtsolutions.co.uk

They have been very helpful and have said i will pay nothing if my IVA is not accepted. I intend to post everything on monday.

I will contact them in the meantime with regard to this letter.

The thing that puts me off is that I have a secured Loan already with first plus. I would rather have the remortgage with my current lender instead of multiple.

[MelanieGiles]

What you need is a re-mortgage to pay off your current mortage and secured loan, and also raise you further equity to offer to your creditors - and at this stage you cannot afford to be too choosy if you want to stop one creditor from gaining priority over the others.

Do make sure that this IP firm understands the urgency of what you need to do, and is able to dedicate the time to you to effect a very quick proposal.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rstewa]

Yes I agree with you on this

I just did a quick calculation on YBS website based on the following.

existing mortgage - 168,000
first plus loan - 27,000-30,000 settlement.

But I have no idea on my creditors and how much they would except on full and final settlements.

For example back in January, Natwest offered me to settle at 11,500 (debt was around 15,500 at the time)

Any ides what kind of percentage i am looking at?

original NR loan was for 25,000. With interest the balance stands at 30,223.

Plus if my property is valued 250,000 I can probablt borrow around 30k based on earnings etc.

[rstewa]

Only thing is I have just moved onto a new 2 year fixed rate mortgage in April with YBS (been with them for 3 years) although i didnt borrow any additional capital.

How will my DMP affect my ability to borrow?

thanks

richard

[MelanieGiles]

If you have already consulted an insolvency practitioner, they ought to be advising you on these points as they have detailed knowledge of your case. Your main problem with all of this is that Northern Rock are unlikely to accept an IVA where they have the prospect of a Charging Order in their sights. And they are a creditor who hold more than 25% of the vote.

I would suggest that you get an offer in principle - where credit checks are undertaken but a formal valuation has not yet occured - to see how much you can borrow, and then try your luck. Personally I am suprised that you have found an IP willing to take this case on as an IVA, given the current climate with Northern Rock's voting policy.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rstewa]

thanks Melanie

I think i will contact my mortgage provider first then go somewhere else if they reject me.

can you recommend anyone else who it might be worth approaching with regard to re-mortgage?

thanks

[MelanieGiles]

Yes

I can recommend two excellent mortgage advisors:-

Tony Parsons - who posts on the forum as Welshboy and his e-mail address is antony.parsons@btopenworld.com

Andrew Graveson - who owns a company called Brightoak and whose e-mail address is andrew@brightoak.co.uk

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[tracy.h]

I understand that you have approached an insolvencey firm,but reading your thread i would seriously consider contacting one of the mortgage brokers that Melanie has suggested.
It seems time is of the essence and with the way NR are setting there stance right now then i'd also look at contacting an ip who has a good relationship regarding iva's with this company and personaly i don't think you would go far wrong filling out one of Melanies forms on her website.
Goodluck in what ever you decide to do.

Tracy

[rstewa]

hello

I think i did a stupid thing this morning and tried to extend my secured loan with firstplus to cover the outstanding unsecured loans i have and was rejected due to credit score. This is not surprising I guess but now i am down that potentially no-one will lend me enough money to cover the debts i have.

Should i stop here or still go ahead with IVA application?

[MelanieGiles]

What does the IP you have instructed recommend? I feel that I have already provided you with a solution, but you need to take more specific advice from whoever is acting for you as they will have your paperwork available to specifically review.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[rstewa]

Melanie

I must be frank in that the IP doesnt have all information just yet. I am due to send this out tonight.

I'm getting scared now as I dont want NR to proceed with the proposed charging order if they cannot get the money this month.

feeling rather down

[MelanieGiles]

You need to find an insolvency practitioner who will act for you immediately, as this problem is not going to go away. If you are happy with the service you are getting from your current provider - send them all of the documentation today and speak directly to the IP to ensure that he/she is aware of the urgency with regard to your application. An IVA can be put together in 24 hourse if necessary.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk