NR Rejection Reasoning

[MelanieGiles]

I find it really hard to believe that Northern Rock would expect anyone to enter into an 18 year DMP! What length of time did you take the original loan out with them, and is it an unsecured loan or part of a "together" mortgage?

[Til]

This probably made no difference to why NR said yes to us last week but about 10 days before our meeting I was worried sick about NR saying no so after much debate I wrote them a letter along with a reasonable token payment.

I will admit the letter literally begged them to agree to the IVA - I told them about how we were desperate for our daughters sake - I was in a very dark place when I wrote it and poored my heart into it.

I know all the experts will say quite rightly that it probably never even reached the decision makers and I'll probably never know for sure but since we are hear to share what we did I thought just maybe it helped?

In the end though I figured I was desperate and it couldn't do any harm so that's what I did.

I am keeping everything I have crossed for anyone with NR in their list of creditors xx

[MelanieGiles]

In my experience Northern Rock read seriously every piece of correspondence received in their insolvency team - which is actually quite small but very specialist.

I could not way whether your letter influenced any decision, but it would certainly have been read by decision makers and the points you made taken into consideration. They key to success is to put the very best proposal forward and explain the reasons behind the need for the IVA.

[Til]

Thanks for feedback Melanie - and it's nice to know that someone will have read it and that just maybe it made a difference [:I]
I feel better somehow knowing it wasn't just binned Thank you [:)]

[Meash]

Melanie - it was a together mortgage over 21 years (18 remaining) they felt that I could pay off the debt in that amount of time. My IP has now suggested going to an interest only mortgate in order to increase my payments by £200/mth to £723/mth. Not sure they will go for this, but it really is the last chance saloon for us.
Grantspants - they are exactly the same concerns as I have. I am waiting to speak to a friend of a friend who has been BR in the past for his advise. My hubby has been fantastic so far but another 18 years of this, I can't expect anyone to put up with that. I have learnt my lesson, I will never ever have credit again, but this is one hell of a wakeup call.

[MelanieGiles]

I still find it incredible that this was asked for - and do keep us informed of the outcome as I am going to take a personal interest in this. As far as I am aware, Northern Rock would not expect someone to enter into such a long repayment plan, but perhaps they have recently changed their policy on this.]

And of course you are aware that by taking out an interest only mortgage with no tool of repayment, you may eventually have to sell the house in any case at the end of the mortgage term. This should be considered when weighing up to benefits of bankruptcy at an earlier stage, if the creditors will not meet you halfway.

Was your IVA submitted in accordance withthe "IVA Protocol". You should really ask your IP this as it may have some impact on the outcome.

[chris.g]

Meash, br ain't so bad. Yes, you're name may be in the paper, only 2 people I know saw mine, and some people may find out but is it worth struggling with paying your debt for 18 years to satisfy NR and still possibly losing your home and face financial struggle???
Of course it's up to you, I really do hope that your ip can make NR see reason on this but if this fails, I would be inclined to think to myself.."sod them, I've tried my best and they shot me down, let them pick the bones from the bankruptcy!!!!"
There is only so much we can do and if certain creditos continue to make unreasonable and unrealistic demands they risk the future of IVA's and losing more of their cash.......
Good luck for today, I'll be keeping my fingers crossed for you, xx

[Meash]

Melanie - I am trying to find out from my IP ref the IVA Protocol. We have to move over the next few years anyway, as our family grows.

[natasha.j]

As you know Meash i too was rejected by nr they have said the same to us. They think it is ok for us to have a debt management plan for around 15 years still be in negative equity in our house and still only be on interest only. What a nightmare i know we only have ourselves to blame but we have held our hands up and are willing to try to sort it out but with no avail.

[Meash]

Hi Nathasha, I couldn't agree more. I wear my guilty jacket everyday, and thought that by going down this route I was making some amends. Apparently not. I know my hubby would sooner me go BR and be sorted in 3 (ish) years than continue in this nightmare (that I have created) for 18. Please continue to let me know how you are getting on, Grantspants is in the same situation too.

[kallis3]

Meash, I hope NR come to their senses - 18 years is ridiculous!

If not, it does sound like BR is a good option for you.

I sometimes think NR are cutting off their nose to spite their face.

[plasticdaft]

As you know Meash i too was rejected by nr they have said the same to us. They think it is ok for us to have a debt management plan for around 15 years still be in negative equity in our house and still only be on interest only. What a nightmare i know we only have ourselves to blame but we have held our hands up and are willing to try to sort it out but with no avail.

if the mortgage is interest only,how do you plan to pay back the rest(is it called capital??). Given that NR expect you to pay into a dmp for 15 plus years?? Absolutely crazy!!!