Hi there, we dont think we will be able to afford our house with new mortgage payments

[littlemom]

Hi there, we have been in an iva for 22 months successfully although very tight. Our mortgage provider let us pay interest only for the last 2 years but now the mortgage will now rise from 710 p/m to 1180 p/m. They won't help us anymore.

our debt 103k
monthly iva pymt 480
paid into iva so far 10,560
equity in our home 47k approx

Emailing my iva company to and fro but would like to be prepared as to what our options are as they want us to meet with them for discussions. Haven't really had any sound advice from them over the last month.
When we started the iva, the iva company were listed on our deeds for our home as having an interest in the property. Would we be able to sell? Is there any advice please with regard to our options.
Sorry this is so long, but don't know what to do for the best. I don't think we can afford to live here any longer. please help if you can.

[Shining]

Hi and welcome to the forum.

I would definitely take your IP up on a meeting to discuss a way forward.

Hopefully one of our experts will be along soon to offer some advice. x

[littlemom]

Thanks for your reply Lesley, and all the best for your debt free future x

[MrsR]

Hi littlemom,

A few other posters have had their mortgage companies request their mortgage being changed from interest only to repayment, and sometimes a discussion with them regarding the reasons why you need it to remain interest only could help.

Your IP will be able to advise you of your iVA steps, and hopefully you can come to an agreement on how to keep both your home and IVA in place- especially as you have done so well to get to where you are.

[luluj]

Welcome to the forum....I would seek your IP's advice on this and meet with them.
As you have equity in your property then with the permission of your IP you may be able to sell your property to release funds to support your IVA.
Have you thought what you would do if you sold ? Would you have enough to clear your original debt and have some left for a further deposit on another house ......if you need mortgage advice then Ryan is available via this forum ...he covers the whole of the market mortgage industry and has been able to help several forum members....his details can be found in the 'ask the experts' section.

Let us know how you get on !

[littlemom]

Hi MrsR, thank you, I have spoken to the management team at nram and they seemed positive we couldn't go interest only any longer, so maybe I should try writing to them and pleading our case. Anything worth a try

Hi Luluj, thank you, we just don't know which way to turn or what are options are, we thought possibly if they would let us sell our house and use some of the equity for deposits and setting up costs to rent somewhere? we have a dog who is very old and after browsing ppty to rent can't seem to find anywhere who accepts pets. We could probably cut £100 off monthly outgoings if we bought new life ins policy and cancelled dog ins.
To be honest, I have buried my head in the sand since I found out about the mortgage rise a month ago, afraid of the future again, and feeling sick exactly like I did before the iva went through.
This seems like a lovely forum and already feel overwhelmed by the support. Definately feeling more positive now to go and tackle everything. thank you all.

[Shining]

Let us know how you get on if you want to as your post will no doubt help others. x

[MrsR]

Hi Littlemom,

Nram are who we are with, as are other posters on here, an can sometimes be pushy when it comes to changing mortgage payment terms, but a letter could help!

Even if they give you another 12 months, that's 1/ more you would have paid into the iva and your iva co may make you make reduced payments and extend the term perhaps ?

[luna]

Hi,
We have recently changed the interest-only element of our mortgage to repayment and our provider allowed us to extend the term which cancelled the increased payment.
You could look into this option as the mortgage company are better off if you pay for longer.
We plan to bring the term back down when our IVA completes.
We did have to get this agreed to prior to entering into our IVA but our provider gave us the option of extending right up to retirement age if required.
Worth a check.
Regards.

[debt tired]

Our provider has let us extend till the first of us reaches our 70th birthday - the only way we could possibly get close to affording the increased payments. Depends on what you do for a living tho as to whether they will. We too aim to bring the term down once the IVA completes.

[luluj]

some great suggestions for littlemom to consider over the next few days....this forum is invaluable to us all for exactly these threads....complete strangers offering advice and support to those who are in similar positions .... a real lifeline to many and an essential piece of everyday life.

[littlemom]

Thank you everyone truly for the support,so glad that at this time have discovered this site. I would never have even thought that option existed, extending the terms of the mortgage could be our saviour. I will write to nram tonight, and keep my fingers crossed. We would naturally finish paying our mortgage at 62 yrs so we do have a little time to play with. I know I will still be working at 68 yrs, like most people.
Hopefully after the bank holiday I would have heard back from iva company too. Will keep you informed of progress.

I wrote a question to Ask the expert earlier, but unsure where to look for the reply? Does it just go to your email?, sorry.

Definately feeling there maybe a light at the end of the tunnel. thanks again.

[admin]

Hi Littlemom
You should have received an email with the necessary info. If not we do apologise for the glitch in the system. Please could you repost your query if it is still relevant ? Many thanks.

[MelanieGiles]

Banks like NRAM need to be persuaded/pressurised to assist people in IVAs, and IPs beed to be creative in dealing with issues like this. You should only consider selling your property as an absolute last resort, and perhaps NRAM might be persuaded to allow you to go part-repayemnt/part-interest only for a while, with an agreement to pay the arrears once your IVA has concluded. Are NRAM also an unsecured creditor in the IVA as well?

[littlemom]

Yes unfortunately, we had a consolidation loan with nram with a balance of about 2,800 when we went into the iva. Do you think this reflects on their decision?

I posted a letter to nram this morning outlining that at the end of the iva we would be able to resume normal payments, etc and could they please help us. Do you know if many people get part repayment/part interest plans?

Our iva company didn't think it would be a problem to have interest only for the full extent of the iva, but i suppose things have changed.

I'm thinking of approaching family for funds as an option for f and f settlement possibly an option? Do you know if this would even be considered when we have equity in the ppty? The remaining balance for 5 yr iva would be around 18k and if we had to do the 6th year £24k left to pay. What would be a realistic figure to offer? The problem is that nobody knows we are in an iva.

Apologies for all the questions, feel like i'm going into meltdown, waiting for iva company response. Thanks for your time. Littlemom