In short we are thinking of moving into my mothers house where we will rent off her for approximately the same amount as we pay for the mortgage (the idea being we will own it one day) therefoe we woud love to just move,
However we owe approximately 155k on the mortgage and secured loan and the house is only worth 120k
We really want to move and are open to ideas. Obviously renting is an option but i wouldnt really know what to do in the circumstances or ideally sell and take the debt with us, however it is obviously not our house we wouldbe moving to.
Advise is appreciated, also our mortgage is with Northern rock and the debt with Nram presumably whilst we are in iva. We were due to re-mortgage this year anyway, any idea what happens?
You cannot sell without redeeming the full mortgage. Mortgages are not portable especially as you are insolvent anyway.Even if you could sell (which you can't without funding the shortfall) the excess would go to creditors. you must have been in massive neg equity when you went into the iva. If you'd gone bankrupt you would have been debt free 3 years ago and kept house. Who the hell advised you? You will have to extend iva by 12 months. Sorry!
If you are in an IVA then you cannot sell without the permission of your IP. Once sold then you will usually be allowed to keep some of any equity towards fees and moving expenses and then anything else will be paid across to your iva.
Take advice from your IP and hopefully one of the experts will be along to advise later.
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
Crossed wires here .... if you continue to the end of the IVA in your present house, assuming the property market doesn't explode over the next few years and you remain in negative equity, there will be no extension.
If it DOES explode and there is over £5k in equity, you will need to attempt to remortgage -- which will be nigh on impossible -- so then an extension will kick in.
As for selling up now -- with that amount of shortfall I don't think it's an option ... but wait until an expert happens along to offer more informed advice.
Shalaw ... if the BR route was taken three years ago, as rosalyn has disposable income, she would only just be finishing paying an IPA. And some people choose not to go BR for many reasons, and it is THEIR choice to make.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
If you want to move and sell your house then you will have to inform the IP. You will probably have to rent as you are unlikely to get a new mortgage.
Do you have an equity release clause? It may be that an extra 12 months isn't an option but you do need to clarify this with your IP.
One of the professionals will advise.
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
Thanks Foggy and Kallis for your sensible and educating advise.
Can i ask how it works with us re-mortgaging. What i mean is that we took a 5 year fixed rate in 2006 which is up this year but the whole mortgage is over 30 years, how does this affect me now in the iva? Do they put me on some hiked rate? do i have to remortgage?
You are unlikely to be able to remortgage - I've not known anyone be able to do it yet. However, you would not be put onto a hiked rate it would be added to your original mortgage which is why an extra 12 months, if applicable, is preferable.
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
Chances are, when the fixed rate ends, they will put you on a variable rate and the mortgage will continue on that basis. The way things are interest wise ( for now) some people are actually paying less on the variable rate (however, this just means more available for the IVA)
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
The only thing that confuses me is the extra 12 months?
'I've not known anyone be able to do it yet. However, you would not be put onto a hiked rate it would be added to your original mortgage which is why an extra 12 months, if applicable, is preferable.'
If you take on a remortgage (if you could get one) then obviously you pay it over a longer period and pay more interest.
The twelve months is in lieu of that and will be a lot less in the long term.
However, I think your original query was about a normal remortgage this year - speak to NR about a possible remortage - are you on a fixed rate?
You need to speak to your own IP about your specific circumstances.
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
That's what I thought. You can speak to them about refixing and hopefully they will agree to it.
On the plus side if they don't then your mortgage payments will drop.
Apologies for getting hold of the wrong end of the stick1
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
Hope I've managed to salvage the situation Rosalyn.
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
