Northern Rock

[spurs]

Hi all, my wife an I have a unsecured loan with Northern Rock which is tied to our mortgage of roughly about £13000. In the terms of my IVA proposal it says my wife could be liable for the full amount if my IVA goes through, What I want to know is how come they are entitled to a vote? plus they are being very difficult! Thanks

[Adam Davies]

Hi
As it is a joint loan NR will be entitled to chase your wife for the full payment. With all joint debts both parties are liable for the full amount. What provision is in your expenditure for your wife to pay this ?
Regards

[spurs]

HI Andy, good question! I will have to look a bit more into that one, by the way are Northern Rock usually quite difficult when it comes to IVA's?

[Michael Peoples]

N Rock have their criteria and support IVAs that meet these. It may seem strange that they would reject an IVA where the joint debtor is still repaying the loan in full but sometimes this can be overcome. Your wife will still need to make the contractual payments to this loan otherwise her credit file will be damaged and in the unlikely event that she repays this loan before the IVA is completed she could actually claim in your IVA.

[MelanieGiles]

Northern Rock are not difficult at all to work with in my experience, but the IVA proposal must take account of their criteria and also thought given to anyone jointly liable for the debts. If your wife is going to continue to meet the contractual repayments, then a rejection of the IVA is not appropriate and, if anything, Northern Rock should abstain from voting.

Are you sure that your IP firm has fully researched your case before presenting it to creditors?

[stewpots]

Northern Rock turned down my IVA , debt about £16,000 with them. Thankfully that was under the 25% in terms of votes

My ex wife signed some papers but they never chased (I have no idea of her where abouts). I think it was in my sole name only anyway.

Odd company, 2 phones calls and the 'accepted' a token £1 a month for a year ! before my IVA

This was the company that lent £30,000 over the top of a 95% mortgage 3 years earlier (seperate loan I had repaid)

[Its_a_long_road]

My wife and I have an unsecured element to our mortgage with Northern Rock and my IVA was accepted on the basis that she keeps up the payments for the unsecured part every month. So it is possible!

[anamae82]

Hi, i have a joint mortgage with an £24k unsecured element which we are in the middle of applying for an IVA. If its joint does it mean we won't have the complications like you guys ??? If that makes sense

[MelanieGiles]

Northern Rock will look to see if they can get a better return by you proposing two separate IVAs - where effectively they get a bite from each cherry. If your case fits the well known NR criteria, you should have no problems at all.

[lexie2005]

Have to say we had no problems with Northen Rock accepting our IVA but that was before they had their financial problems so maybe they have just got a little tighter now the government have such a say in their affairs. Good Luck with everything

[andrea1968]

hiya-we had our iva accepted last month and northern rock had over a 50% share of the debt-we were on a debt management plan with a well known company and were advised 6 months ago that it would be unlikely that northern rock would accept because we have a fairly decent income and bankruptcy wasnt an option.However apparently (according to my insolvency guys}they have recently changed their criteria for accepting iva on unsecured loans(which i used to pay with my mortgage}and northern rock voted in favour=even though on debt management they were still receiving 138 pounds of an original contracted payment of 150 pounds-because of this i was convinced that they would vote against the iva and get there moneys worth on the debt management side of it.i am so relieved it is unbelievable-debt management would have lasted over 17 years at 280 a month-we are now paying 310 for six years{northern rock requested the extra year so i wasnt going to argue with them}there was 21 years left on the unsecured loan of 22000-they will now receive around 8000 pound instead of the 45000 i would have paid with interest[:D]because we had only had the loan for three years i was sure that they would not accept-and blissfully happy that they did-heres to the next 6 years and remember-when in doubt-try them out-they can only say no!!!!!!!!!

[MelanieGiles]

I'm not aware of any changes in criteria, so would be interested to know what your IP knows that I don't! Could you clarify this please?

[andrea1968]

[quote]Originally posted by MelanieGiles

I'm not aware of any changes in criteria, so would be interested to know what your IP knows that I don't! Could you clarify this please.
hi-our debt management plan was accepted in february of this year-we had a review about 3 months into this to see if an iva would be appropriate but told due to northern rocks absolute refusal to freeze interest on our debt owed to them it would be unlikely they would agree-then my debt management company called two months ago and told me that northern rock had relaxed there criteria for acceptence and there was a good chance we would now be accepted.I believe they said that they(northern rock}had bowed to increasing government pressure to relax their criteria.Thanks andrea.

[andrea1968]

i took a mortgage and unsecured loan with northern rock(the 125% ltv deal that finished them off!)why would you pay the unsecured element seperate to your iva when all unsecured debt should be included in it?just curious[:)]

[MelanieGiles]

That is just not correct Andrea - you were badly advised in the first place as there has been no relaxing of a refusla to cease charging interest on an unsecured loan. Which DMP company were you with?