Hi, I am very new to this site and wonder if anyone can advise me.
I currently have £45000 of unsecured debt and I'm looking at getting an IVA. I own a property and have a joint mortgage with my wife however my mum rents this off us and I live in rented accommodation. Stupidly we didn't change the mortgage to buy to let. I'm assuming this will be picked up on and I don't want to get into any more trouble! We have absolutely no equity in our property by the way.
Any help/advice appreciated.
The fact that you have a residential mortgage rather than buy to let will not concern your IP, in my opinion
Does your mum pay market value for the rent and does it cover the mortgage payments ? If so your current arrangement should be unaffected if you enter into an IVA. Your creditors may expect you to either remortgage or possibly sell the property [as they will see it as a BTL] if there is equity in year five, so do consider this
Speak to several companies and ensure that all your questions and concerns are answered
Welcome to the forum ... I agree with Andy in that the IP will not worry over type of mortgage.
However I would consider swapping it to BTL mortgage as I recently had a friend who had rented her house out after a split but didn't change it. Something happened at the house and she had to go through insurance and inform the mortgage company ..when she answered the questions etc it became clear it was rented and the mortgage company have withdrawn their policy and are now seeking full payment ...which she can't do and house is now being sold. Had she informed them the difference in monthly payment would have been £25 ..its not worth the heartache or worry in my opinion.
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
Many thanks for replays. I obviously can't see my mum go on the street or risk losing my property, what if I play devils advocate and state I still live at that address, my mum who is renting my property fully understands my situation. I'll just change all credit card details, etc to that address. Is there any way creditors can find out I don't live there? Many thanks
The electoral register will show you at the rented address, as will your council tax account and utilities. There are numerous other ways for the sticky stuff to hit the fan outside of the IVA as you will be basically deceiving many bodies (DVLA, car and home insurance, utility companies etc., etc ).
I would not advise basing a solution on such a weak foundation.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Plus if you go into an iva your credit cards will no longer exist.
Get anything that you need sorted done before you enter into the iva.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
I do want to add my credit cards to the iva. I'm really stuck as I'm in so much debt and I now can't see a way out. I can't risk losing my property. Will creditors go down the route of looking at council tax/utilities? Will a DPD be a better option?
You won't have a choice. The only debt that does not go into it is the mortgage and secured debt, car finance etc.
IVA started March 2011, Completed March 2016 and certificate issued 11 days after final payment. It was not always easy but then some of the best decisions aren't.
It's not a case of creditors looking -- which they, or at least the IP, won't do unless given cause, but it is surprising how stuff does come out of the woodwork. For instance .. you renew your car insurance and the car is registered at the rental address, they might do a credit check and wonder why you don't appear to live at the address you have given.
We have even had instances reported on the forum of neighbours and workmates questioning the validity of some debtors statements with their IP's !
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
I'm just panicking as I really really want my debts sorted. My mum just covers the mortgage payment so we don't make any money. I would basically have to set everything up at my mums. I'm really hoping work colleagues/neighbours won't find out!
Maybe a DMP might be a start -- at least to give you some breathing space, but, to be honest, at that level of debt, unless you can pay an eye watering sum each month, a DMP isn't the be all and end all as it could take forever to clear the debts.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
Why not just convert the mortgage to buy to let ..then there is not an issue. Yes it will increase it slightly but it would be more straight forward when sorting out your IVA etc ...
Sharing from experiences of dealing with debt
There is a solution for everyone .... Just need to stay positive !
I think I'll start by phoning my mortgage provider to see how much they will charge to change to a buy to let. There is no equity in my house so I'm assuming I won't be made to sell up.
It is possible that your mortgage company may not mind about the renting out of the property if you tell them it was a necessity. They would prefer to get paid rather than have the property back so if yountell them you have financial trouble and this is to try and resolve it they may allow it. You will need to inform the insurance company but hopefully the mortgage company does not penalise you.
The mortgage company would get a copy of any IVA but not a DMP so this may be an option to consider for a while at least.
