iva and together mortgage with northern rock

[dave.m]

Hello, we have a together mortgage with northern rock and were hoping to do an iva but we have noticed on the forum that an iva proposal was rejected by northern rock as they class the mortgage and the unsecured part as one. If northern Rock class it as part of your mortgage would that not make it secured on the home in some way.

Would it be possible to leave out Northern rock in the iva proposal making it more likely that the iva would be approved by our other creditors. Our unsecured part of the mortgage is over 25% of our total debt making it unlikely that the iva would be accepted.Anybodys advice would be much appreciated. Has anybody else had a together mortgage approved for an iva.

[Oliver]

Hello Dave

There have been problems recently with Northern Rock declining IVAs where they are owed a large sum of unsecured lending which was taken out with the mortgage. This money is NOT treated as secure lending as it legally is not secured on the property. As Northern Rock have more than 25% of your debt, they have the power to decline your IVA proposal by voting no to it (as you need to secure a yes from 75% of those who vote, pro rata to the amount of debt they are owed). However, this does not necessarily mean that you will not be able to propose a successful IVA. Northern Rock have stated that they will look at things on a case by case basis. The main complaint from Northern Rock seems to be that the first time they hear about a client not being able to make their monthly payment is when the IVA proposal arrives. Perhaps it would be prudent for you to contact Northern Rock and discuss the possibility of arranging a reduced payment because you are struggling financially. At the same time I would advise that you contact several companies to discuss in more detail the viability of your proposing a successful IVA.




Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[finebridge]

Hi Dave,

Once you have clarified if your debt with Northern Rock is secured on your property (you should be able to find this out from your mortgage statement) this will go along way to establishing whether an IVA is sutitable for you.

If your debt is unsecured it will need to be entered into the IVA. If the loan is classified as secured, ensure you make an allowance for it within your income & expenditure statement, when calculating how much you can afford to offer creditors.

Although there have been rumours of Northern Rock rejecting IVA's we are still managing to get their acceptance. I guess it depends on the individual proposal put forward.


I hope this helps & Good luck!
Kind Regards
Nicola



Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Oliver]

Finebridge a "together" mortgage will always have an element of Unsecured debt in it. Northern Rock offer this style of mortgage which includes a Secured loan coupled with an Unsecured Loan. Sadly the Unsecured section is often fairly large due to the money lent and the time it is paid back over, this means that this can give Northern Rock the deciding vote in the IVA.


Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[finebridge]

Oliver,

Many thanks for clarifying that.

Kind Regards

Nicola

Finebridge Ltd
22 Laud Street, Croydon, CR0 1SU
0800 180 4212
www.finebridge.co.uk

[Oliver]

No problem Nicola, welcome to the forum.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[MelanieGiles]

In my experience, it depends upon who Northern Rock use to do the voting. At present they are using three individual professional firms - two of which are generally supportive of IVAs and one (who are also insolvency practitioners) who are not.

Therefore there is absolutely no consistency in approach, and depending upon what letter of the alphabet your surname begins with depends upon IVA success. Absolutely mad!!!!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[spenmotherhen]

Hi dave_m
We had a "Together" loan and mortgage with Northern Rock. Our unsecurred debt (the loan part) was 25k and we had a mortgage of 98k.
Last May we began our IVA and the 25k of our together loan was included in this and we pay our mortgage as normal. It is wise to speak to Northern Rock, as we did. They were very helpful and very understanding compaired to the other creditors who were not interested in your predicament, just if we could make them a payment NOW!!!
As it was mentioned previous by Melanie each case is looked at individually and if they are already aware that you are having a financial blip, they may be more negotiable.
Best of luck spenmotherhen

[scaredkez]

i too have the together mortgage with NR, they didn't reject the iva they insisted on modifications which were cancellation of life insurance which was a stipulation of the mortgage to have and our payment protection insurance of which i could understand, synergi advised me that Nr see life insurance as a luxury and therefore ask you to cancel it, but if they knew this i didn;t understand why it wasn't taken into account on the proposal. these modifications were imposed so to push my offering up to 43 p in the £ it was blackhorse that rejected me outright with 26% of the vote and wouldn't change their mind.
kerri