If I enter into an IVA what happens to my mortgage? Is it another debt or can I continue to pay it and remain in my own home? I have never defaulted on my mortgage payments.
As your mortgage is secured upon your home, you will need to keep making those payments as an essential part of your expenditure. The mortgage is a debt, but will either be secured in full or in part by the value of your property. Your mortgage company will be informed of your intention to propose an IVA, but are unlikely to take much notice of this if you are up to date with your payments.
They might do as ours did with us - perform a drive by valuation just to make sure that they will get their money back if something happens. Nothing to worry about if they do.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
You may have to pay into your IVA 85% of your net equity interest in your property in the final year of your arrangement, provided that such equity is above £5,000. Normally by a re-mortgage.
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
