Has anybody had success in getting the unsecured element of a together mortgage with northern rock through an IVA? I am really worried that this may scupper the chance of being debt free in 5 years.
Hi and welcome
Yes is the short answer.
There are a couple of hurdles to overcome though.
If the unsecured debt is, for example, 15k with NR and your total unsecured debt is 45k then NR will be entitled to 33% of your DI. If the payments to your unsecured mortgage are say £150 and your DI is £450 then NR share of the DI will be the same as the contractual payment[33% of £450] so they are unlikely to accept the IVA.
If their share of the DI is less than the contractual payments then they should accept although they may ask for an extra year.
Hope that makes sense
Regards
So what you are saying is really we need to insure NR will recive a deal that shows they will recive less that there contractual monthly payment to say yes to an IVA?!??
Hi
Yes
If their share of the DI received was the same as contractual payments then they would prefer a DMP over the loan term and receive all their money back.
Regards
Lots of people have in the past and are continuing to do so. Northern Rock do have a set criteria which they tend to follow, but if you are putting your best foot forward there is no reason why you could not get an IVA accepted.
