www.iva.co.uk

We are currently 7 months into an IVA with a mortgage and a secured loan. My mortgage deal ends in March and I already know that we wont be able to afford the payment with the increase in interest rates. Also our secured loan payment is becoming ridiculous.
Would it be possible whilst in our IVA to change to a better mortgage deal with additional unsecured loan to pay off Secured Loan and maybe even end IVA early??
I am currently with Northern Rock and have looked into their 'Together Mortgage'
Would it be possible and acceptable to try to get this together mortgage to cover and pay off at least the secured loan (this would save us approx £500 per month). If we did would this extra money have to go towards our IVA?? Is it possible to pay off the IVA with this unsecured part of the mortgage??/
Any advice would be welcome.
Thanks

Hi
To take out an unsecured loan you would need your IPs express permission also I would doubt if NR will accept your application given the fact that you are in an IVA.
Maybe a better way forward would be to remortage and pay off the secured loan.You should be able to save on your monthly costs.
Any extra disposible income over and above your current IVA payments would need to be paid into your IVA so be sure to revisit your expenditure if you do go down this road.
Speak with your IP before doing anything so that they are kept informed.
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