my fixed rate mortgage expires

[sarah.c]

If I take out an IVA & i need to remortgage next month as my fixed rate mortgage expires - could an IVA jeopardise this? I am currently with Halifax.

[Andrew Graveson]

Hello Sarah,

An IVA will have a significant bearing on your credit status and therefore the availability and cost of mortgages that might be available to you.

At what stage are you in considering or working on an IVA proposal?

[MelanieGiles]

I suspect that it would be better to put the IVA on hold until you have a mortgage offer, but how does that sit with you Andrew if you were assisting this poster with a re-mortgage application in the knowledge that they were about to propose a debt solution to their creditors?

[Andrew Graveson]

A mortgage broker has a responsibility to both their client and the lender to be open and transparent in their dealings. This obviously has implications for all the parties involved.

Particularly in the current mortgage market people facing the need to remortgage are well-advised to personally consult their own lender about whether the lender will offer a competitive replacement mortgage arrangement when the current one ends.

A current DMP client approached me recently about their need to remortgage in the next couple of months. Today they were offered a fixed rate for three years at 5.79% by their existing lender. Their chances of beating this in today's mortgage market are very very low hence proving the point that working with your own lender is a sensible starting point.

[MelanieGiles]

That's a brilliant rate - in fact I think it is better than the one recently obtained for me by my own mortgage broker!

[Andrew Graveson]

Just goes to show that you cannot be too careful Melanie!

[jpj]

Yes Melanie...you have to join the elite IVA club to get the best deals!! )

[IFA Law]

When the mortgage comes to the end of the fixed rate period, Andrew is quite right, whether there is payment history of financial difficulty or not, the first call should be to check out the mortgages available from your current lender. If your mortgage is a standard mortgage (ie before any payment problems), the rate you will get from your existing lender can very often be better than that available by remortgaging with a different company. With the credit crunch a lot of lenders have stopped offering credit impaired mortgages and those that still do are now offering products at higher interest rates.

Any adviser or broker should always check the existing lender first. As Andrew said, It’s all about doing the best for the client. An Adviser (or broker) can then provide you with all the options and support you throughout the process.