Re mortgage

[hara]

Dear all,

I have a mortgage for250000.

I remortgaged about two years ago.I did not know about IVA.It is a pity.

Otherwise I would have propsed a F&F.

Even when I remortgaged I had 200000 debts.

It was arranged through gmac which has been sold to mas5.

I pay 4.99%.Monthly payment being 1036.

It is coming to end in march.

I phoned my existing mortgage provider, who has asked me to phone 4to 6 weeks before the arrangement ends.I feel that it does not give much time if I want to shop around.

Has any one got any views.

The second issue is that I have been IVA for the past 6 months and am finding the going very difficult.
If I can not get a favourable rate on mortgage it would make life very difficult.

I am paying 1000 per month to IVA.

The whole thing is causing extreme anxiety and worry.

I have a 4th year remortgage clause, but the IVA can end with that clause.

I am coming to 60, one of the jobs I am holding is not secure.There have been suggestions of redundancy or early retirement.

That would make it impossible to sustain IVA.

Bankruptacy is not an option.

I have mentioned full and final settlement to the firm representing me (Grant thornton).The lady I spoke to has asked me to speak to another person in the firm.I have to do that after holidays.

I have to pay 29p in the pound,total being around 70,000.

We have some equity in the house,thinking of selling,down sizing and am thinking of raising some money from my two sons.

I know it is early in IVA but I am expriencing extreme stress
and this is making it very difficult to concentrate at work as well.

If I manage about 60,000 pounds is there a realistic possibility?

With the property prices falling the creditors may not get much by waiting for 4th year remortgage.

Our proprty is worth about 300000.

I would grately appreciate advice onboth fronts,please.

Hara.

[Adam Davies]

Hara
A rate of 4.99% is exceptional and you will not find anything like this when your fixed term comes to an end.Therefore it makes the idea of a full and final evem more appealing to your creditors as you will not be able to maintain the IVA payments at the present level due to the increase in your mortgage payments.
To sell up and offer the 70k will,i feel,be acceptable if proposed correctly by your IP.
Good Luck
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Soulgrowth]

Hi Hara

Due to an unpredicted post IVA debt arising last year my then successful IVA was doomed to fail (which it has done for complicated reasons). I have since remortgaged and now have the funds available to offer a F&F which will give the same return as my original IVA but now, rather than later. Fingers, toes and everything crossed that it will be accepted. My original IVA was similar to yours at 26p in the £. I am not saying that it will be successful ... what I am saying is that we seem to be travelling similar journeys ... so good luck

Debbie

www.familyceremonies.co.uk

www.soulgrowth.co.uk

[hara]

Thank you Mr.Davies for a reply.

Now I am more worried about arranging a new payment schedule for mortgage.

My existing mortgage provider has asked me to phone about 4 to 6 weeks before end of fixed rate.

I was hoping to arrange some sort of new fixed rate for a further period at the same rate or may be a little higher.

has any one got any views as to what rate one may have to pay if in an IVA?

Hara

[hara]

Dear Soulgrowth,

Thanks for your reply.

could you tell what rate of interest are you paying? who is it with? and who arranged it for you?

Hara.

[Adam Davies]

Hi
Hara,the base rate is 5.25% so any mortgage rate will be higher than that,by at least 1%,plus the fact that you are now in an IVA.You maybe lucky and your existing provider will offer you a very competitive rate.
Regards

Andy Davie
IVA.co.uk Spokesperson and Website Manager

About me:
http://www.iva.co.uk/andy_davie_profile.asp

IVA Helpline: 0800 197 4838
http://www.iva.co.uk/iva_helpline.asp

[Soulgrowth]

Hi Hara

Sadly I couldn't tell you what rate of interest I am paying ... all I know is the payments are quite high because I was desperate!!! (It's a bit of a girl thing - along similar lines of I don't care what kind of car it is so long as it's white!). It is with "preferred" mortages who, I believe, specialise in sub-prime but my mortgage broker was through the wonderful people at http://www.bankruptcy.co.uk/index.html# without whose help, dynamic and innovative ideas and professionalism I would have been bankrupt by now.

I hope this helps Hara.

Debbie

www.familyceremonies.co.uk

www.soulgrowth.co.uk

[hara]

Dear Mr Davie,

Thamk you for quick reply.

At the time I remortgaged,I had debts of over 210000,which was declared to my mortgage provider and the person who arranged mortgage managed to have obtained a good rate.

Now I am in IVA if any thing the out goings are less than before,as I was juggling things before.
Also I am thinking of fixing rate for a period.

My first option would be my my existing provider.

I am wondering how the person who arranged my remortgage managed a good rate?
I am thinking of approaching him as well to see if he can help.

I wonder what rate I may have to pay if I fix it for a period while I am trying for a full and final settlement.

I will be phoning my IP on 2nd of january and see if I can get a F&F proposal set out for a creditors meeting.

Hara.

[MelanieGiles]

I do find it strange that this issue was not addressed by either you or your IP prior to the IVA being proposed. How did you envisage that this was going to be dealt with, and from your IP's perspective it was fairly obvious that you would not get anything like the current rate you are paying on your mortgage when it was due to expire - just one year into the IVA.

Practioners must be more thorough when assisting clients to put forward proposals when they are in fixed rate products which will expire during the term of the IVA, and this will need to be carefully explained in any variation report put forward.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[jpj]

Hi Hara
I think you should contact your IP as your mortgage payments will probably be going up to £1,300 to £1,400. and you will need to discuss how this is going to impact on the £1,000 a month IVA payments.
The housing market has gone pretty quiet lately and it could take you a while to sell,
I would also have your house valued to get an exact idea of what your house is worth.
I think a full and final settlement seems your best way forward!
On the good side,interest rates are falling and they predict a rate cut in Jan/Feb which might help you mortgage wise! )

[hara]

Dear Mrs.Giles.

I do not think I was thinking right at that time as I was under a lot pressure and possibly over looked by IP.

Basically no thought was given to it.

Now I feel that I have try for a F&F.

In the mean time I have to try and get a favourable fixed rate on mortgage.

Hara.

[MelanieGiles]

I think that this is one more for your IP than you Hara, and as you say it was probably overlooked. Do make sure that you mention this to them when you are asking for your variation to be put forward.

The mortgage brokers who post on this site would be more than happy to get re-mortgage quotes for you - I suggest that you give one of them a call.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[hara]

Dear jpj,

Our house was valued at 300000-315000 for IVA.

We will be pleased if we can get 300000.It is in very saught after area,which is helpful.

I may be able to afford a mortgage of 1200 per month with a little bit difficulty any thing more would be difficult.

Whle I am arrranging a F&F ,I am thinking of fixing a rate on mortgage.hopefully around 1200 a month.

Any views?

[jpj]

It may be worth looking at a tracker mortgage as interest rates are predicted to fall throughout 2008.
The other thing you have to remember is if you are looking to sell in the near future to remember those early redemption penalties on the mortgage you choose.
If you have to pay 6 to 8 grand in agents fees,solicitors fees,then mortgage redemption fees on top it could eat into your sale proceeds!

[hara]

Dear jpj,

At the moment my mortgage is portable, hence no problem of early redemption fee.

That is why I am keen on seeing if I can get a favourable rate with my existing provider.
Also I may not have to fill form,as I already have a mortgage with them.

Hara.