IVA-v-My Mortgage Lender

[snowmonkey]

I am considering an IVA, and have a mortgage with Norhtern Rock. I am now on an SVR as the property is in negative equity and my fixed rate has expired. No new deals are currently on the table. So - If I do an IVA does anyone know what the general view is of the mortgage companys to existing customers ? My Mortgage is interest Only and fully up to date ( I always make sure ths is paid first ). I am worried that Northern Rock might "React" to my decision to do an IVA in some way although no benefit to them to call in the mortgage. I am cautious to call them to ask there views on existing customers taking IVA's in case I start alarm bells ringing in there ears. Also, as I have two children I will need to move in the next 3-4 years and again would appreciate some guidance on the options to move mortgage providers whilst in an IVA ? Help would be appreciated, Thanks

[plasticdaft]

What other debts do you have?

[MelanieGiles]

Northern Rock will not call in the mortgage as a result of your IVA, and so long as you continue to make your mortgage payments they will be happpy.

It will be difficult to move and purchase another property if you have negative equity in this one - as I don't think that Northern Rock allow their mortgages to be ported any more. It might be worth you checking this out before you put firm plans into place.

[snowmonkey]

My Unsecured debts are 8 Credit cards, 1 Standard Loan (which was taken over a 6 year period and I am in the 5th year of payments with nothing ever missed until 2 months ago) and 2 x Flexi Loans (where you have a limit and draw as you need to). Additionally however I have an £11k unsecured loan with Northern Rock as part of my mortgage deal on there "Together" Mortgage products taken 2 years ago. Naively I didnt realise I would need to include this in the IVA until I read a similar story on the net so I guess I am even more nervous now

[snowmonkey]

Thanks Mel. I know from when I spoke to my personal IFA that he felt it would take 3 years before I came back into a level position with the house and restored the Neg/Equity so I guess in my mind I was thinking of how I would move forward once this was restored. As you say I cant go anywhere whilst we are in a negative position.

[MelanieGiles]

Bringing in the unsecured element of your Northern Rock mortgage product should not represent too much of a problem, especially as this will free up more disposable income and therefore make your IVA perhaps more viable.