fixed rate mortgage during iva

[debtdumb]

Hi,iva accepted May 2009-big weight off shoulders.Our fixed rtae mortgage ends approx 12 months before the end of our iva any ideas of what will happen re the mortgage? Can we get another one or will our lender switch us to the s.v.rate.Oh and our lender is also one of our creditors- Northern rock together mortgage.The unsecuerd loan from them is in the iva, thanks.

[size5]

There isn't really an answer to that, it is impossible to predict market conditions/lending criteria that will exist at that point. I am no mortgage expert, but I do know enough to get by and as far as I am aware you will automatically be switched to SVR when your deal ends and then you will have to go from there.

If that is a bad thing, for example interest rates have shot up in the intervening period and the cost of SVR is much higher, then your IP should be happy to reduce your level of contribution at that time to offset the shortfall.

Sorry I can't be any more specific.

Regards.

[Michael Peoples]

In addition to what Size5 says it may be possible at that time to remortgage and offer a full and final settlement. No one knows the market conditions at this time but as you will likely have a 4th/5th year clause anyway the most opportune time may be when your current deal expires.

[Julie]

Hi - first of all you need to make sure your IP is aware of your fixed term ending during the term of your IVA.

If creditors will not reduce the payments to allow for the increase in mortgage, then you can change to an interest only mortgage.

Hopefully Tony Parsons will be able to advise you further.

[Welsh Boy]

As other posters have said nobody can possibly know what the market will be like in 4-5 years.

Working on todays lending criteria you would be able to look at mortgage funding and if the same conditions apply then you should be ok with regard to a mortgage app.

You would normally divert to the lenders svr unless you ask them what products they had that would be available to you.

Try not to worry about things so far in the future an awful lot of water will flow under the bridge before then and the marketplace is changing constantly. Look to contact a broker circa 12 weeks before the end of the fixed rate and they can do some searching for you.Tony

[MelanieGiles]

I am finding that the majority of my clients who are switching from fixed to variable rate are actually better off at the moment, although this is unlikely to last with interest rates predicted to rise in 12 months time.

[debtdumb]

thanks for all the advice .