IVA's and mortgages

[Cawkers]

Hello all, first post so apologies if the topic has already been discussed.

I had my IVA agreed in July 2006 and I take home approx £1200pcm
I was allowed £400 for my mortgage
And had to pay £400 for my IVA for 60 months &
The remaining £400 was allowed for other essential costs, Council tax, insurances, car costs etc.

My mortgage consists of 70k secured at £400pcm and 7k unsecured at £60pcm. My IVA adminsitrator agreed that the unsecured amount would be part of my IVA and the payment after the IVA was agreed would then only consist of the mortgage secured amount of £400pcm.

Well my mortgage company voted "no" to my IVA but it still was agreed due to a 75% yes vote.

Since then my mortgage company still takes the secured and unsecured amounts from my account via direct debit every month, I have written to the mortgage lender and told them they are not supposed to take the £60pcm unsecured amount, and forwarded my mortgage statement to my IVA administrator showing this but the mortgage company still take out both payments each month.

Since then due to the interest rate rises my mortgage has gone up to £500 secured payment and £75 unsecured payment, making a total of £575pcm which has caused me to get a couple of months into arrears and have also am currently having to borrow from family members to cover the increased mortgage payments.

I have 2 questions on this issue -

1. Can I get my bank to amend my direct debit to not include the unsecured amount on my mortgage as it was put into my IVA even though the lender voted "no" to the IVA.

2. Should I be contacting my Administrator requesting a reduction in my IVA payments based on the interest rate rises pushing my secured mortgage payments up by £100 per month.

Thanks in advance.
Cawkers

[aguise]

Hi cawkers and welcome
I'm not very up on mortgages etc but Have you spoken to the ip about this as I would have thought that if they were taking money they should not then this should be reduced from what they get in the iva. I would think that if the payment for the unsecured part goes separately then you could tell the bank not to pay it. I would also think that you could tell the bank not to pay more than a certain amount each month to them so if you set it at 500 then the bank should not give them any more.
This is only my opinion but I would not stand for this, they shouldnt be doing it.

Ang

[Sadsack]

Hi cawkers

I had an unsecured loan from Northern Rock and this formed part of my IVA. Cancel the direct debit immediately for the unsecured payment and inform your IP that you have done so. If you check your Chairman's report, make sure that the unsecured loan of £7k is on it. If it is, they should not be taking the money as it forms part of the £400pm that you are paying into the IVA.

Sue

Ho Hum! Think I'll bang my drum!

Read My Blog
http://sadsack.blogs.iva.co.uk/

[Adam Davies]

Hi
Something is very wrong here,the unsecured part of your "mortgage" is part of the IVA agreement by law and why your IP has not sorted this out I fail to understand.
You can not alter a DD but you can cancel it,so if the payments are collected by two different DD then cancel the one that relates to the unsecured debt.
You must get hold of your IP and get them to sort this out URGENTLY.
Please keep this forum posted.
Regards

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp

[accgroup]

Hello Cawkers

As far as the unsecured loan is concerned, the mortgage company is bound by the IVA and shouldn't be taking any repayments. You should seek a refund of any repayments made to the unsecured loan since your IVA was approved.

It's not clear whether the mortgage loan and unsecured loan repayments are being taken on the same direct debit. If they are, the mortgage company will need to amend the direct debit to only take the mortgage loan repayments. If not, cancel the direct debit for the unsecured loan.

Your IP should help you if you run into difficulty with the mortgage company.

As regards the increased mortgage repayments, it is standard practice for your IP to review your income and expenditure on an annual basis. However, generally most IVAs are modified by creditors to prevent a reduction in contributions and we are now seeing modifications preventing any variation to proposals within the first 24 months. It is worth discussing these issues with your IP.

AccumaGroup - A large insolvency practitioner service based in Manchester.
www.accumagroup.com

[ivoriva]

I agree with the others, do check the approved proposal to ensure the unsecured debt is listed. Presuming it is, speak to the mortgage company right away and get them to change the direct debit amount if you are paying both mortgage and loan back in one DD payment. And also insist on a refund for all payments to the unsecured loan since your IVA was approved. You may need to put this in writing, but do call them first.

[Oliver]

The other experts are absolutely correct, your mortgage lender should not be taking the payment for the unsecured debt. Contact your IP about this as soon as you can. With regards to your mortgage payment increasing you can ask your IP to review this and they in turn can put forward the proposal to reduce your monthly payment accordingly. If the creditors don't agree to this you may have to think of a way to reduce your mortgage payments perhaps by, reviewing your interest rate, lengthening the term of your mortgage, switching part or all of your mortgage onto an interest only basis.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Cawkers]

Thank you all for the quick excellent advice.

Both secured and unsecured parts or the mortgage loan form one direct debit payment (currently £575pcm). I will contact my mortgage lender and IVA adminsitrator straight away to get the payment amended to take the secured part of the mortgage only and let you know how I get on.

[Oliver]

All the best Cawkers, look forward to hearing how you get on.



Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Cawkers]

Reply from mortgage lender blaming an admin error (lol) and saying that payments from now on only for the secured amount of the mortgage, nothing about refunding payments made to date for the last 10 months, so another letter to them requesting this I think.

[Oliver]

Keep at them Cawkers sounds like you are at least getting somewhere, well done.

Best Regards
Oliver

Thomas Charles and Co Ltd.
Experts in personal debt solutions.
Read customer feedback at: www.thomascharles.com/about_us.asp

[Adam Davies]

Hi
Well your half way there and don,t give up until you get that refund.
Well done

Andy Davie
IVA.co.uk Spokesperson and site manager
(aka Neverending)

Please check out my blog: http://andydavie.blogs.iva.co.uk

View my profile here:
http://www.iva.co.uk/andy_davie_profile.asp