Great idea Andy only problem is daft as it sounds most people with finance problems are just ‘too clean’ prior to entering an IVA. Let me try to explain;
Mrs X owes £50,000 in various credit cards, store cards, small loans etc.
and a £130,000 mortgage.
She starts to notice that it is becoming difficult to service this debt.
She starts to borrow money to make payments to other creditors, to date she hasn’t actually missed too many payments, but is finding life very hard and decides to remortgage.
She has a joint income of £37,500, which is enough to cover raising a remortgage for her existing mortgage, but… she has outgoings of £800 a month to cover her unsecured debt. This causes affordability issues and will not meet lenders criteria for affordability.
As daft as it sounds….
a) If she defaults on her unsecured borrowing she could remortgage, as the lenders will say she is not servicing the unsecured debt, so she has more disposable income.
b) If she enters an IVA she will be able to remortgage as her monthly payments on the unsecured debt will be lowered.
What’s crazy is;
Even IF we can find her a mortgage product that betters her existing product rate, we still couldn’t remortgage her unless a) or b) had happened….
FREE ADVICE IS THE BEST ADVICE
LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.
see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf
