monthly mortgage payments at IVA annual review?

[No1]

What with recent base rate reductions, especially today's 1.5% reduction, how does an IP view monthly mortgage payments (expenditure)at each IVA annual review? Obviously, anyone with a review due early next year would be showing an I & E with vastly reduced expenditure - yet any subsequent increases in base rate would see monthly expenditure rising again. Would an IP increase your monthly contributions at review time(and then presumably allow you to reduce them each month after any subsequent base rate rise) or would they record the old, historic monthly payments which would hand you an initial buffer then allow for future increases without the need to amend the monthly IVA contributions?

[creditcrunched]

i vote for a bit of festivity from the ip`s and if its the same in january take some[8D]

[MelanieGiles]

IPs simply look at the changes in your income and expenditure and determine whether an increase or decrease in payments is warranted.

My policy is to operate a once per year full review, trusting my clients in the meantime to tell me about material changes which would affect their ability to fund their contributions. This seems to work quite well, and leaves my clients to the hard bit of going out to work to enable the repayments to be made.

No point in breathing down people's necks. It is not wanted and in my experience rarely contributes to higher dividend payments ultimately.

[David Mond]

I agree with Melanie - we will not be chasing clients just because there has been an interest rate cut at this time.

[Abby]

watching the news today i got the impression that although there has been a cut in intrest rates, not all banks are passing it on to the borrowers, n/r being one of them.[:(]

[David Mond]

I promise you it will happen - they just need a kick up their ar*e