I'm currently in my first year of an IVA and currently have a mortgage however, I would like to move in with my boyfriend which would mean giving up my mortgage and paying rent to my boyfriend. I am happy to do this as I realise I will not get another mortgage whilst I'm in my IVA however I do have some questions that I'm not sure about so would really appreciate some advice if anyone can help
1. As my boyfriend owns his property, if I pay him rent, will this then mean he would be expected to remortgage some of his home to pay some of my debts?
2. Does anyone know if this would be frowned upon by IVA companies because, if I sell my house, it then means I'm not able to remortgage my current home, as agreed, in my fourth year or will the IVA company expect my boyfriend to remortgage his house in year 4?
If I'm renting with my boyfriend it will mean I will be able to pay more each month towards my IVA than I do currently as it will save me a lot of monthly costs which is why I am seriously thinking of doing this.
We have been together for 3 years now and we wanted to move in together which is what gave me the kick i needed to get my debts sorted out and, although moving in together would mean I have more money to pay towards my IVA payments, I would not want to jepordise my boyfriends property in any way. If I can pay him rent then, once my IVA is fully paid, I can then look into getting a mortgage so we can then have our own home.
Thanks in advance
Your IVA will not affect your boyfriends property, as long as your name isn't added to the mortgage. He will not have to re-mortgage in the 4th year as it is nothing to do with your IVA.
You will have to let your IP know you are planning on selling your property - I can't see it being a problem as you will be freeing funds to pay into your IVA.
Will you make any profit from selling the property?
When you do move in with your boyfriend, you'll have to complete an new I&E to determine your new disposable income.
did you have to sign a form when you started your iva that puts a block on you selling your house without permission from your ip and creditors.
i think this is a standered procedure that home owners have to do when they enter a iva.
it is permissable with permission as you say it will free up some equity(if there is any) for your iva.
im sure the ips here will clarify whats possible
cc received 6th January 2014 now upwards and onwards
Is there any equity available in your current property? If so, you should consider offering this to the creditors in lieu of the final year equity release provision - assuming that you have this in your IVA. Your IP will need to call a variation of the IVA terms if you do decide you want to sell, and you may find that your payments in future increase if your outgoings reduce as a result of the sale.
Don't worry about your boyfriend's property - this cannot be affected by your IVA.
