Interest only mortgage

[Johny Cash]

Hi everyone.

My wife and I are in a joint IVA and have been since Oct 2008.

We will be expected to re-mortgage next year. My existing mortgage with NR is 216k. (House is worth approx 280k) We pay interest only on this due to affordability reasons. I dont want to re-mortgage any more credit against our family home since it will leave us in a much more dodgy financial situation for years to come. In addition we want to switch to capital repayment when circumstances allow which would be never if we have to lump more money on our already huge mortgage

What is the protocol for IVA remortgages with regard to interets only repayments and affordability???

Thanks in advance for your help..[:)]

[Shining]

Hi and welcome to the forum. It is unlikely that you will be able to remortgage in the current climate (assuming things don't change) therefore a further years payment in lieu of equity is being proposed a lot on the forum. Do you have a required amount of equity to release? Someone will be along soon to advise more concisely. x

[MelanieGiles]

There are no lenders out there who will re-mortage to you based on the figures you have presented.

What provision is there in your proposal for dealing with this situation?

[Johny Cash]

Thanks for your replies...

If we cant re-mortgage then we will continue for an extra year with the IVA.

I would much prefer this as opposed to being forced into a position where we have to borrow even more money. Even if this meant we would pay slightly less per month in our overall expenditure than at present we would be paying our mortgage for a much vaster time period (Indefinatly in an interest only case!). That would mean we end up paying considerably more than simply continuing with the IVA for an extra year at £200 per month. (Total extra funds we part with are £2400 with the additional year OR £??? how many thousands with a re-mortgage!!)

Surley no-one would want to go down the re-mortgage route would they?? It appears to me that from the debtors view proceeding that extra year with the IVA is much more cost effective and favorable route in most cases?? Unless what they would re-mortgage would be less than what the additional IVA year totals to be...

Anyway in our personal case its good to know creditors wont be offering to dig a deeper hole for us to crawl into.[:D]...no matter what some wally in a suit says my house is "worth"

What do you think..

[kallis3]

I don't think it's a matter of wanting to do it these days - nobody is able to!!!!!!

I'll be happy to do the extra 12 months.

[anomalous1]

I just wondered....
Does he HAVE to stay on an interest free?
Can he go to repayment hence having less for contributions?

[kallis3]

If you are on interest free and in an IVA it is highly unlikely that your creditors are going to agree to you changing to a repayment to lessen your contributions for them.

[anomalous1]

Interest free?
I wish lol

[kallis3]

Typo - I meant interest only.