secured loans 40% of our income

[CAROL]

We applied for an IVA through Vardenn Nuttal, and we were told that because our secured loans were 40% of our income we would need to earn £500 more per year before we could get an IVA for our other debts.I just don't understand this, could you explain it to me

[Adam Davies]

Hi
If your mortgage and secured loan payments take over 40% of your total income then most creditors will not allow an IVA.
You could look to remortgage and combine the two,reducing the monthly amount or change your mortgage to an interest only one,instead of repayment
Regards

Andy Davie
IVA.co.uk Spokesperson

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

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

[MelanieGiles]

There are only a few creditors who actually operate this ruling, and I have certainly got cases through with higher percentages so long as the justification is highlighted within the proposal.

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

[kieranandmegansmum]

i have applied for a iva through the same company as you our joint income is 2200 and have changed my mortgage to interest only as advised and also have a secured loan in total 1000 a month so this is more than 40% and they are doing an iva for me

S WARD

[Andrew Graveson]

Hi Carol,

There are a number of posters on this site who could give you an opinion on whether it is possible to restructure your mortgage/secured loan into an arrangement that took up less than 40% of your income.

They will not be able to provide this advice on the forum as they rightly and properly need to fully understand your situation in detail prior to providing advice.

As Melanie states if you choose the right IP there might be no need to do this anyway.

Andrew Graveson
Mortgage Broker & Bright Oak Debt Management
andrew@brightoak.co.uk
www.brightoak.co.uk