mortgage

[angela18]

Our fixed rate mortgage deal ends in April. We have just started IVA proceedings, how would we stand if our mortgage rose considerably?

[carlmcmullen]

As the mortgage was due to end so soon (in the next two months) i would have suggested that you attempted to change before entering the IVA.

However, do you have some equity in the property, as normally if you dicsuss with your Supervisor when the time comes you are able to change your mortgage providers to perhaps a fixed rate deal, providing you can maintatin your IVA payments and it does not affect the current equity level.

The only problem you may find about re-mort during an IVA you will find it very hard to get a mortgage of more than 85%LTV

But have we have just seen a recent INT rate drop and they are expecting further reductions in the coming months-hopefully it wont be a problem.

[MelanieGiles]

The increase in mortgage payments will need to be built into the income and expenditure account presented to creditors. At this stage it would be sensible to find out what deals your current mortgage provider has available and if you could secure another fixed rate product for the next five years this will give you certainty throughout the IVA.

If your current lender is unable to help, then you should shop around to see what else is available - and the forum mortgage experts Andrew Graveson and Tony Parsons could help with this if you gt stuck.

[whichwaynow]

We have got 18 months left on our 2 years fixed, by this time my full and final will have been completed for 15 months, I will hope to then fix for 5 years will I be able to get a high street rate or will I still be paying a higher price.
I have got no debts at all apart from my mortgage I would hope this would put me in a good position. My wife had nothing to do with my debt and has never had credit will they take this into consideration. I know 18 months is a long but my wife is starting to worry about mortgage payments if they are high I would be greatful if someone could give me some idea I know its a difficult one because nobody knows what interest rates will be

[Welsh Boy]

whichwaynow

As you quite rightly say nobody knows what interest rates will be in 18 months. Purely as a comparison if you have an IVA conducted satisfactorily and have missed no mortgage payments you should be able to get rates not too far away from high street standard variables now. So using that yardstick as long as you continue paying your mortgage which is imperative and also conduct the IVA satisfactorily you shouldn`t be too heavily penalised rate wise. The rate would depend on your circumstances at that particular time.

So make sure you try to maintain your mortgage payments and save the concern for 18 months time, well actually I would start looking around 6-8 weeks before the end of the fixed rate.Tony

[whichwaynow]

HI Welsh Boy
You say it will be close to high street variables now. We would want a fixed rate for 3-5 years not a variable What would we be looking at.

[Welsh Boy]

whichwaynow

You would have to see what 5 year fixed rates were available at the time. I know this doesn`t really answer the question but to give you generic information there are 3 year fixed rates available now at 6.85% for those in IVA`s or with IVA on their credit file. It really would depend on the outcome of a search at the time. Sorry I couldn`t be more specific. Tony

[angela18]

thanks for the advise everyone, may just wait too ride the mortgage storm, maybe for once lady luck may just shine!!

[whichwaynow]

Hi Welsh Boy its me again
6.85% thats scary. At the moment we are paying 5.45% which is £500 per month which for us is ok any more and it would be tight. When the searches are done they will see no missed payments and no credit. I thought that once the IVA was completed we would get a better rate or is it the same as if we were still in one. Just got to hope for the best and interest rates go down.

[whichwaynow]

Just wondering how the various Mortgage companies reach the rates they offer you ? What do they look for in your credit file ? Do they look at your whole credit history or just the last few years ?

[Welsh Boy]

whichwaynow

They have their own ways of assessing applications, for example some lenders will completely ignore any defaults prospective clients may have. They will look at whatever arises from the credit search and look at how that particular application fits in with their lending policy to see what product if any is applicable.Tony

[angela18]

hi just a quick question..
If I was to try and get a new deal on my mortgage which is curently with C&G, would they not need to see statements from banks etc.. I at the moment have nothing left in mine at all ever, would this not look bad to lenders

[Welsh Boy]

angela18
C&G along with most lenders would want a full appraisal of your current financial situation, including details of income and expenditure. You could explain to them why you are not in possession of certain documents at the time you are enquiring about a new deal.Tony

[anais743]

I was a manager of the conversion department at C&G (remortgages) for 7 years and my partner still works there. if you currnetly have a C&G mortgage they do not carry out a credit check when you come to take out a new deal with them. The conversion application also does not have any question relating to you being party to an IVA (I have it in front of me now) although the new house purchase/house move application does. cant speak for other lenders though.

[angela18]

thanks anais, would i just call C&G and see what they can offer..