Hi everyone,
Been in my IVA almost 18 months and my mortgage that i have a 5 years fixed term on is about to end in June. I am on a 5% fixed and i know that the standard rate for that lender is 2.5% at the moment so what will happen when it finishes in June will my mortgage just decrease , will i have to apply again, will i get offered anything as i am in an IVA and finally will i pay more into the IVA if my mortgage decreases or could i shorten my mortgage with increased payments ?
Thanks
Your mortgage will automatically revert to the lower SVR rate, unless the terms of the mortgage deed provide otherwise. If this result in an increase in your disposable income, you may need to increase your monthly contributins
I had a tracker mortgage with Halifax that finished when I was about 18 months into my IVA.
Once the deal finished, as Melanie has posted, I reverted to their SVR.
In my case this resulted in my mortgage payments increasing and this was factored into my I&E at review time.
I was actually offered three fixed rate deals by Halifax when I phoned them regarding a new mortgage deal (I asked for fixed rate deals as I thought they would give stability during my IVA), but they would have impacted too adversely on my IVA payment so I had to gamble and stick with th SVR mortgage.
Last edited by Goosed on Wed Apr 10, 2013 1:37 pm, edited 1 time in total.
"When the seagulls follow the trawler, it is because they think sardines will be thrown into the sea".
Our fixed rate deal ended recently, during the IVA, and when I questioned the mortgage provider about what would happen it turns out I automatically went onto a lifetime tracker which is 2.5% above base rate ie 3%.
Our fixed deal ended recently and we were offered another fixed deal or to go onto the SVR, neither changed our mortgage payment and therefore would impact on our IVA, but we chose to go onto another fixed deal so we would have the certainty for another 2 years, we dont have any equity either so were surprised we would be offered another fixed deal
