Page 1 of 1
Posted: Tue Oct 07, 2008 10:15 am
by Scott72
I am on a two year fixed rate with my mortgage company. At the end of the two years, if I have been approved for an IVA I suspect I am going to find it impossible to find a lender prepared to offer me a better deal.
Am I right?
Posted: Tue Oct 07, 2008 10:17 am
by kallis3
It will be very hard to get a new one, even people who are not in IVA's are finding it hard.
It won't hurt you to try though.
Posted: Tue Oct 07, 2008 10:18 am
by Scott72
In which case, will my increased mortgage payments get taken into account at my review?
Posted: Tue Oct 07, 2008 10:24 am
by kallis3
You will do a new I&E anyway, so the increase will need to be put down.
If you are not in an IVA yet, then I think the possible increase in payments should be brought up when you do your initial calculations.
One of the technical experts will advise further.
Of course, in two years time, things might have changed with mortgages anyway!
Posted: Tue Oct 07, 2008 10:37 am
by MelanieGiles
Scott - if you have not yet proposed your IVA, you must make it clear to the Supervisor that your are on a fixed rate mortgage which is due to increase at some stage during the term. I would have thought that your IP would investigate this in any case, but best to be sure.
If you are already in an IVA, then this ought to have been picked up prior to the finalisation of your proposals. If you do not have a "stepped" IVA payment, then you will need to draw this to the attention of your Supervisor as soon as possible to ascertain whether a variation will need to be proposed.
Posted: Tue Oct 07, 2008 10:43 am
by Scott72
Many thanks. I did stress, repeatedly, that I only actually completed on the mortgage in August this year. I shall remind them.
Posted: Tue Oct 07, 2008 11:51 am
by David Mond
Scott - was the mortgage company aware you were in an IVA? Was your IP aware or buying a home post IVA did you discuss this with your IP?
Posted: Tue Oct 07, 2008 12:05 pm
by Scott72
I am only just applying for the IVA now. Not got to the proposal stage yet. So I wan't in one when I completed in August.
Posted: Tue Oct 07, 2008 12:08 pm
by MelanieGiles
Make sure that your IP takes account of this when calculating the payments for your proposed IVA. It will be critical that this is provided for, otherwise you will not afford the payments in the long term.
Posted: Tue Oct 07, 2008 12:51 pm
by David Mond
Melanie is bang on - vital your IP is aware of future payments after the fixed rate term finishes - good luck