We have been on a tracker interest only rate, this will finish end of feb. We have called our mortgage company who has suggested a repayment mortgage can I do this on my IVA?
so would i be better off staying as I am, and perhaps making bigger contributions to my first plus, my secured loan on my property, for the period of the IVA and would this be allowed. I am very confused! I am just not too sure what I should be doing.
I cannot provide advice on mortgages or secured loans, because I am not professionally qualified to do so. The point that I was making was that if you start repaying the capital off your mortgage, or increase the capital repayment to your secured loan, then you will possibly be creating a higher level of equity which then leaves you potentially exposed to taking out further borrowings at the end of the IVA, if you have those provisions within your proposals.
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.
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Your IP I think is the key to the question as to what you can or can`t do in your IVA, if your lender would lend on a repayment basis then there should be no reason why they wouldn`t lend on an interest only basis.
Your point was can you do this in your IVA, I would look to your IP for guidance. Tony
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Either by making a repayment mortgage or paying your secured lender more now will create a bigger equity in your home at the time that you have to realise the 85% (or whatever your proposal states) in the final year. As other posters have stated discuss options with your Supervisor (IP) and come to a compromised agreement that does not make you worse off.
Last edited by David Mond on Sun Jan 11, 2009 5:51 am, edited 1 time in total.
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.
I would think very carefully before switching to a repayment mortgage. As the others have said by switching to repayment you will have more equity to release at the end of your IVA. You need to think about how this will affect your mortgage payments in the long term.
I switched to repayment just before taking out an IVA. If you don't switch surely the reduced payments will increase your IVA payment significantly at the next review?
Depends on how much they are reduced, and whether you have any increased expenditure.
Not everyone will benefit from the new lower rate.
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
Hi
I agree with Stony, if you stay on interest only your disposible income will increase and your payments will increase in your IVA [if not swallowed up by increased expenditure ]. I would go onto repayment.
Regards
