www.iva.co.uk

Hi All

This is my first post, I am 10 months into my IVA, and am finding it quite difficult. My mortgae came to its fixed term in September and has increased by £130.00 per month. currently my partner is paying the full amount currently 720.00 per month it was 590.00.
He is finding it more and more difficult to keep up with these payments. I am worried that we will get into arrears. My IVA paperwork states that there is to be no variation for 24 months. IF I apply for a variation does this mean that it will be rejected. I have spoken to Northern Rock and they have said I can take a payment holiday, I have accrued 3 payment holidays. Whats my next step? Will I be allowed to take these within an IVA?

Hi and welcome.

Not too sure about the payment holiday, but you are coming up to the end of your first year, and so should be due a review. You may be able to vary your payments there as you will do a new I&E form.

You may find that your IP is able to vary your payments by up to 15% without going for a variation anyway.

One of the technical experts will be along to advise shortly.

Hi Chappie welcome to the forum, i'm not sure about the holiday payment as i know when i asked i was told no because of the IVA but i'd wait for one of the experts to arrive who will be best to advise you.

good luck.

Hi
Have a look at changing your mortgage to an interest only one.
If you already are on an interest only mortgage have a chat with your IP as you will clearly need some help.If a variation is not possible at the moment then a mortgage break must be considered.
Regards

Definately worth speaking to your IP.

10 months ago was a long time and few people thought we would be in such a financial crisis.

Although your IVA talks about no variations within 24 months these are exceptional times and they may certainly warrant an early review

Thanks Andy, I did try for an interest only mortgage before my fixed rate ran out. Northern Rock didn't want to know, Will a variation be possible given the fact that it does state on my paperwork, no variation for 24 months. Should I try and speak to Northern Rock again to let them know that we are struggling with the mortgage payments in the hope that they will agree to an interest only one. Never missed a payment up to now, so unsure what my next step is. Thanks again

A shame that you and your IP did not spot that the fixed rate mortgage was due to expire at such an early time after the IVA was accepted - and therefore built in a staggered repayment plan to accomodate this.

A number of my clients have got Northern Rock to agree to a reversion to interest only, so I would have another go at that - or even part capital repayment/part interest only. If they still say no, then your IP will need to consider whether a formal variation of the IVA might be a sensible move.

We have done a number of variations even when it stated none in the first 24 months. Most creditors will look sympatheticly because of changed circumstances - even NR can be helpful and they are getting better each day - thanks to reasoned discussion and a little cajoling. Get in touch with your Supervisor and discuss with him a possible variation.

we changed ours to interest only mortgage with NR quite easily. Have you told them you have no other option as you have taken professional advice and because of your circumstances you cannot get a better rate elsewhere?

Give them another call and be assertive that you only need the interest only for the duration of the IVA. NR told me, they'd prefer that rather than us miss payments and risk repossession.

Worth a try xx

Hi and welcome to the forum.
I'm not with NR but I agree you should speak to them again and stress the reasons you want to change to interest only. I'm with GE Money and they were very good and sympathetic - I changed to interest only and initially they agreed to six months only - I hope they will review that when the six months is up. Every little helps as they say.
Good luck and let us know how you get on.

Thanks Everyone.

My IP was fully aware that my fixed rate was due to finish in September, and myself being Naive at the time of the implications of being within an IVA thought that I would be able to refix with another lender. I will speak to NR tomorrow to see what they can do, i will let you know how i get on. Wish me luck xx

Then I think he/she will have some questions to answer from both you and your creditors. As professionals, they ought to have known 10 months ago that it would be difficult for you to find another lender - especially as you are in an IVA.