Hi,
Please could you offer some mortgage advice. Our Iva is due to complete in Aug 17 after 6 years of payments. We currently have an interest only mortgage with Barclays at 4.99% interest what are the chances of us moving to a repayment mortgage straight away after last Iva payment has been made? Our LTV is about 55% at current property valuation. Also we currently have 12yrs left on the mortgage and will need to go back to a 25yr mortgage. My husband is 40 & I'm 37. Many thanks for your help!
A bit nearer the time I suggest you speak to either Ryan or Shaun (details under ask experts a question link on the left hand side of the page) as they have been instrumental in helping many posters on here with a (re)mortgage.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
It is possible that Barclays will be happy to work with you and you may not even need to find a new lender. However I agree with Jan that it is worth finding out what you need to know in advance of the completion date so you can move as quickly as possible.
A difficulty might arise as although you will have finished your payments you will still be in an IVA until you get your CC (which take some firms up to 6 months to issue) and it takes up to 3 further months form receiving your cc to come off the register.
Worst case scenario it could be until May 2018 before you are off the register.
Hi Jo1979
As you wish to extend the term and get back on to repayment, then even Barclays will want you to be credit checked and the affordability to fit.
Getting you back on track, and a new mortgage will certainly be an option once your have your completion certificate, and the credit files are clear.
I will be happy to help you with all this nearer the time if you want to get in contact.
Ryan Radford
IVA Mortgage Expert
Zebra Money Centre
IVA Mortgage advice needed? Looking at Right to Buy and completed IVA still on credit files ?
I'm in the exact same position - interest only, remaining mortgage term by end of IVA is 8 years,wish to switch to repayment but change term to possibly 20 years. I'm with Coventry Building Society who have said regardless of the IVA we are still eligible to change products when our existing one finishes Sept 17. However, when I mentioned changing the loan term that was a different story, but said they'd happily discuss it nearer the time to check our affordibility. They seemed pretty accommodating as we've been a customer for many years, but we'll see next year! Worse case scenario, continue interest only until CC arrives and credit files clean I guess.
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
I actually had a client who took a further advance from the Coventry and settled their IVA with a full and final. Coventry knew about the IVA and were happy to pay the funds once they received confirmation that the IVA would be discharged. Not sure if they would do this these days but it does show they are a progressive building society.
Dont forget your are likely to be able to start to pay extra lump sums off the capital - which will reduce the capital oustanding - without the need to remortgage.
Even if you are on fixed rate - you may be able to pay up to 10% per year of total oustanding mortgage - without penality charges
Last edited by ginger323232 on Thu Jul 28, 2016 5:05 pm, edited 1 time in total.
Thanks guys. Coventry have been great about the IVA and do genuinely seem to want to help and nothing has been ruled out yet re mortgage term time and also yes, once the IVA is done if I couldn't switch right away I plan to start overpaying as we'd be £1200 a month better off! We do however have a creditors meeting on the 16th August as we're offering a full & final so if that goes well then I'd start overpaying asap and when my fixed product ends Sep 17 hopefully Coventry will help. If F&F not accepted then nothing we can do about overpaying until IVA has run it's course. Can't wait to be debt free and bring the mortgage down though! Thanks for all advice. Such a great forum
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
Best of luck from me too and great to see a proper building society trying to help their longstanding members. The bigger boys could learn a lesson here.
Thank you Michael & Lisa. Yep, not long now! And yes, I'm impressed with Coventry as we've had some pretty frank chats over the last few months and I feel they really are there to help us as let's face it, regardless of the IVA they're still getting our business and we've never defaulted with them. So fingers crossed all round! Thank you again. I swear I live on this forum and have gained so much knowledge! And personally, the IVA has been a god send. Not to say there haven't been rocky times but we were a sinking ship pre IVA!
IVA started Sept 2012, Full & Final accepted Aug 16th 2016 & CC issued 10th Jan 2017
