Well it's that time of year again where I have sleepless nights worrying if Nram will extend my IO mortgage,last year we had to go to appeal to win a 12 month extenstion, I just hope this year it all goes to plan I've less than 2 years left and it would be such a shame for it all be wasted by having to go BR if I can't carry on IO, just wondering if any posters have had to renew IO with Nram and if it all went ok.
Was in the same position last year with NRAM...although my mortgage was taken over by Virgin on the change over.
I had been fortunate to remain until IO from start of IVA until last review in Oct 12, however, the Virgin policy is 6 months max and when I applied we completed another I & E for Virgin, however, IO was declined......even with a full explanation of the IVA facts.
Fortunately my IVA Company held another meeting of creditors and was able to reduce my IVA payments by a near comparable amount of the extra my mortgage payments would cost....in the meantime I paid into my IVA what I could afford. Its a scary time and no mistake as had my creditors not agreed to the reduced payments I would be up the river without the preverbial.
Unfortunately when dealing with Virgin I got the impression that in relation to mortgages and an IVA at least, they're a lot less forgiving than Northern Rock (NRAM) ever was, although I suppose
given current "affordability" issues, they have very little "wriggle" room.
Good luck.
Last edited by Pennyless on Sat Jun 22, 2013 11:42 am, edited 1 time in total.
I came into this world with nothing and still have most of it left!
the worse thing is that the increase in my mortgage payments and my IVA payments are the same so won't be able to afford both, strange thing is that Nram are one of my creditors also, so if i have to end up BR they lose out both ways as I'll lose my house with negative equity and also the payments of my IVA, hopefully I'll get the extenstion otherwise it's gonna be more stress and sleepless nights
Both Virgin & Northern Rock were amongst my creditors (in excess of nigh on £10k each), however, when I reminded Virgin of this, it did not make any differance on their decision.
I came into this world with nothing and still have most of it left!
I was also naturally very worried of creditors view, however, notwithstanding that neither your creditors or your IVA Company will want you to "fail" so far down the line, there are certain circumstances where it may be possible that creditors will accept "payments made to date" as a full & final settlement. I'm sure your IP will look at all scenarios before contemplating anything approaching a "fail".
I came into this world with nothing and still have most of it left!
I was also in the same position and had multiple extensions to iO . Nram refused it in the end and insisted on repayment. My supervisor had to arrange a creditors meeting to make a reduced amount offer that was hank fully accepted. The increase was over £500 a month thus reducing my dd payment to the iva by the same amount. It's actually turned out for the best as I am now meeting iva requirements and repaying my mortgage. Every case is different but please discuss with your ip.
Hi deepinit
I have had to go back on repayment mortgage with nram, they just wouldn't budge with an IO extension. Likewise my extra mortgage payment is just over the cost of my iva. My ip have been fantastic and gave me a 3 month payment break so i could pay the mortgage. Luckily a relative has offered to pay a f & f for me, I am 2.5 yrs in and whilst the ip awaits the responses from the creditors i haven't had to pay the iva this month also. I'm hoping it will be accepted We have about 15k equity on our ppty, but the ip have told creditors this would be eaten up by solicitor/estate agents fees, and a hefty deposit to rent a ppty. It appears that all ip's seem to offer differing levels of support, so i hope yours can help you out, it may not be as bad as you think, good luck.
Hi
thanks for the replys looks like I'm gonna have a fight on my hands to keep IO or it's gonna be a lot of phone calls and email with my case worker at payplan, I just hope they sort something it'd be such a shame for it to fail after the struggle we've had over the past 3 years and only 18 payments left on IVA
Why not try and propose a full and final based on what has been paid to date? You can then switch to repayment and move on and if NRAM are a significant creditor they could hardly reject the variation.
Fingers crossed for you deepinit - as you say it owuld be such a shame for you after coming so far. No-one would win if they decided to take you off IO.
I hope you get a positive outcome without too much of a fight on your hands.
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thank you Michael and Tina, I will try and see if they will take a full and final with whats already been paid in if it comes to that, hopefully I'll be allowed to carry on IO and finish this IVA its not been easy ( and its not meant to be) but i would like to finish it and pay back what was stated at the start I've just check statements and I'm only £8757 short of what was agreed as a 31% div, I've still got another 2 IVA payments to make before my IO runs out taking it down to £7747 so that could be a option if I'm so close to the orignal div that was agreed.
spoken to Nram and as my IO isn't up till sept they won't talk about it till next month, my father has offered to lend me £5000 as a full and final, payplan won't consider a F&F till Nram tell me to go on full repayment and I can't afford the IVA then they'll look at a new I&E and if I can't afford they will put F&F forward or they might lower payments and extend IVA, how long could my IVA be extended by? I'm already 3.5 years in with no equity in my house I don't want to have a never ending IVA I need to see a light at end of the tunnel. I now sort of hope that Nram do refuse IO extenstion so it forces the issue
I am fairly new to the whole process and find it interesting to read posts of others experiences but I do not always understand what is going on - in this case what is IO - sorry for my ignorance but it does help to fully understand. Thanks in advance.
I know I am a good person, I just need to start believing it
at the moment I'm on interest only on my mortgage with Nram i have to ask for a extenstion every 12 months, but they seem to have changed policy at Nram saying secure debt is most important and should be paid first and IVA second, and putting you back on to full repayments, the only way I could afford IVA was to be interest only
We have about 15k equity on our ppty, but the ip have told creditors this would be eaten up by solicitor/estate agents fees, and a hefty deposit to rent a ppty. It appears that all ip's seem to offer differing levels of support, so i hope yours can help you out, it may not be as bad as you think, good luck.
