Re- Mortgage

[Stoney Broke]

Hi all, as you know my IVA was approved in august, my current fixed rate is due to finish on 30.11.07, i have called my current lender and informed them of the situation with my IVA which they are already aware of, they agreed to offer me another fixed rate at 5.85% for 2 years, a deal for exisiting customers only, trouble is thats just over £100 a month more than i pay now, i'm really worried about this as it will affect my IVA i am only paying £110 a month into my IVA until my HP finishes next year, so what do i do??[?]
is it worth staying with my current lender ? is this a good deal?, or it there someone out there who deals with re mortgages for people in IVA's
Please HELP !!!

[mikebdomain]

Stoney broke that is in fact a very good rate and it would be hard to beat it. But feel free to phone any of the brokers who post on the site and go through your details, just to confirm

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Stoney Broke]

Thank You will do that

[MelanieGiles]

I'm amazed that your lender is giving you that rate. Can you tell us who they are please for my own future reference? I suspect I may know the answer but just want to check|

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]

This situation seems to be getting more common....peoples fixed rates end,their mortgage rates shoot up, and virtually swallow up half (in your case all) their IVA payments!!
Surely more and more people will be looking at 6 year IVAs ?

Can stoney broke reduce their IVA down £100 to £10 a month??

[Adam Davies]

Hi
Why is this ending of a fixed rate not factored into the IVA ?We are talking of an IVA approved in august and the fixed rate ending 3 months later,surely the IP as a professional should pick this sort of thing up.
Question for the IPs...does a fact find ask this sort of question when assessing a persons situation prior to an IVA being proposed ?
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

[jpj]

I guess if they did factor it in quite a few IVAs wouldnt get passed in the first place!
Plus you dont know what mortgage rate you are going to be offered/secure when your fixed rate ends!
If I had factored in that my £600 a month IVA payment might drop to £300 a month in 10 months time when my fixed rate ended my creditors might have said forget it!!

[Stoney Broke]

Its First Active, i'm just hoping now that it is a genuine offer in my circumstances.
They did check and ring me back so i am hopeful!

I gather that you believe its a good deal then ? should i contact my IP now and inform them of this will i need another meeting?

[Adam Davies]

Hi
You will be able to gauge three months before what your payment is likely to be and if it's a fact that your mortgage payments will increase then it must be factored in.
As i've said before it is not all about getting the IVA approved,it's about getting it concluded successfully
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]

Andy

I always question my clients as to the ending of fixed rate periods and, where possible, we try to stagger payments downwards to ensure that IVA payments remain affordable. The best deals around at the moment for existing IVA customers seem to be around the 7.1% mark, so anyone with a fixed rate mortgage at a lower rate which is due to expire over the next two years, is at potential risk of failure - although my own predictions are that the sub-prime market will settle down shortly and interest rates will drop.

Some clients are still prepared to take a risk on the unknown, and so long as this is highlighted within the proposal the IP has done their job. A number of my own clients faced with this issue recently have advised me that they would sell their house rather than see their IVA fail - which goes to show the complete commitment a lot of people in such arrangements actually have.

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

[mikebdomain]

Just to underline Melenies point we have just seen GMAC-Rfc increase their LTVs and lower their rates. They are a big sub prime player and this is sure to nudge some of the other lenders into action.

We are now also seeing rates from 6.25 available to sub prime borrowers.

It is going to be a slow haul, but sub prime products and rates are starting to get back to normal.

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Andrew Graveson]

Hi Mike -

Are you sure it's getting back to normal? The GMAC changes yesterday left their lowest non-conforming (near prime) rate at 7.25% & all self-cert mortgages capped at 75%. Not unusual in the market right now, but very different to a few months ago? Not so many free valuations and other incentives out there either.

There's definately some reasonable deals out there where brokers match the right clients to the right lenders, but the market still seems in flux with rates being replaced much more frequently than usual.

I agree that it will correct slowly but I think there's going to be a lot of ups and downs on the way.

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

[mikebdomain]

Andrew
I think we are going to see a lot of permanent changes to self cert and sub prime max LTV’s. But in general, yes, I think we are getting back to some form of normality. Our total cost for comparison APR had been between 8 and 8.5 for at least 6 months prior to the ‘credit crunch’ we saw a massive rise during the actual crunch and now we are back at 8.5 and steadying off.

Gmac lowering rates and coming back into the market with some competitive products albeit with some low LTV is in my opinion a good sign. I don’t know if you got the broker correspondence from SPML yesterday requesting feedback about increasing applications but I feel they are starting to see a massive drop in their business and they need to do something about it, inside information is that we are going to see some interesting propositions from them over the coming weeks.

Future has seen the niche opening and is also offering some interesting exclusives; my guys reckon they can now place business, which they had to turn away only two weeks ago. Slow, but sure signs that the sub prime market is finding its feet again.


FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf

[Andrew Graveson]

Agreed Mike. Self-cert and max ltv's are less likely to recover to the previous level. This is going to create challenges for everyone involved due to the number of self-employed people in IVA's who have difficulty evidencing their income. Many will have signed up to a 4th year equity release clause, the viability of which could now be under question. I think those in IVA's, IP's and brokers need to think that through in advance, and that creditors may have to amend their view of what can and cannot be expected to happen.

It is interesting how so many 'sub-prime' lenders have been pushng their 'prime' product so hard over the past few weeks. I can only imagine that their lending volumes have crashed and a they'll have to react by coming back to the market or have no future.

Agreed on Future as well. They've just come up with a great market-leading deal for an IVA client of mine at near-prime rates.

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

[mikebdomain]

Our suggestion to SPML to increase business? Reverse the changes made over the last three weeks - doubt if they will though...

FREE ADVICE IS THE BEST ADVICE

LEYBRIDGE LIMITED
Mortgage Broker
Specialising in adverse credit.

see feedback and testimonials at:
http://www.leybridge.com/testimonial.php
Check out my blog at:
http://mikebdomain.blogs.iva.co.uk/
Please read our Initial Disclosure Document(IDD):
http://www.leybridge.com/Leybridge-IDD.pdf