My mortgage is currently interest only. If I move in with my partner, and rent out my property, could i use the rental income to switch to a repayment mortgage? or would the rental be classed as additional income and have to be paid into the IVA? The rental would probably generate £300 pounds above what I pay on my interest only mortgage, so ideally I would switch to repayment and use it to pay this. I am guessing this wouldn't be allowed but thought I would check with one of the experts. Thank you.
Are you currently in an IVA lou33? If so, then you need to speak to your own IP re this, it may be that any savings you can make on outgoings by living together may be adequate compensation to your creditors in lieu of switching to repayment, providing that they are not being asked to subsidise, in effect, your switching to repayment. It may also be though that by switching you will be potentially freeing up equity which may subsequently have to be released.
As I say, a call to your IP to get his or her take on things is your first step.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
