Payment Break

[caknight]

Hi

We have asked for a 3 month payment break whilst the wife is off on maternity.

We are not asking for a variation at all, just the 3 months off.

They have asked us for a I\E report even though we only done one just before xmas, do we need to do this or can we just ask for the 3months with out having to do another I\E?

Cheers

[Adam Davies]

Hi
Best to complete another one showing the reduced wage of your wife,I guess the IP must have to have an upto date I+E on file in order to allow a payment break
Regards

[caknight]

Hi Andy

We have also asked for a mortgage payment break for maternity, the bank has advised they will allow upto 6months for maternity breaks.

However we were wondering what this may mean to the IVA break?

Cheers

[Cybus]

To simply allow a 3 month payment break, without being in possession of full facts would not be on.

You are probably being asked for the Income and expenditure review to ascertain the level of disposable income currently available.

I think it would be better if you offered reduced reduced level contributions for 3 months with a suggestion that the arrangement term be extended by the appropriate amount of time it would take to make up the arrears that would arise.

Is there any particular reason wht you feel the need to have a complete payment break? I wonder what your plans are for after the birth? Would your wife be in a position to return to work on a full time basis?

[MelanieGiles]

Most IVAs default when three or more payments are missed, so agreement to this may actually be outside your own IP's ambit? Check the terms and conditions to be sure.

[caknight]

Hi

The reason being for it is we are having a baby and she will be on maternity allowance, hence salary drop and as she is in a highly paid job we can manage if we have the break.

Our Terms state that we can have 3 months payment break if we require it.

rather than go through the whole variation meeting and bother creditors un necissarily, we thought this would be the best option, especially with the mortgage break as well.

We are unsure as to if we should advise the IVA company in question that we are asking for a 6 month mortgage break or not?

It's a weird one and can't find any one else who has asked.

Baring in mind the state of our IVA in the first place which I am not going to go into again, but you can search through previous posts from me, we are reluctant to tell them anything as they don't seem to care anyway!

Cheers

[Adam Davies]

Hi
I would advise your IP of the mortgage break,if you have an equity release clause in your IVA you will effectively be increaing your mortgage balance and reducing your equity.
I am sure that there will not b a problem but it's best to keep your IP fully informed
Regards

[caknight]

Thanks Andy.

We do have an equity release but we have a 125% mortgage anyway so the release would never have happened anyway.

Thanks again

[MelanieGiles]

Are you sure that all of the £125k is secured on your property? Who is the lender?

[caknight]

no it's not all secured, the lender is northern rock. however melanie we have talked about this b4 and they never took the unsecured part into the IVA.

[MelanieGiles]

Well if Northern Rock are being completely preferred in your IVA - I do remember the earlier posts - perhaps they might like ot assist you with a payment break.

[caknight]

Hi there IVA company has agreed to 3 months and mortgage 6 months in principle we just need to send them a letter. which is great whilst the wife is off on maternity

[kallis3]

Good news then caknight. All the best for you and your wife and the expected little one.

[Lisa2009]

Great news xxxx